Home Ownership Campaign (HOC) 2019

Home Ownership Campaign (HOC) 2019 is an initiative announced by the Minister of Finance, YB Mr Lim Guan Eng, during the tabling of Budget 2019 last November whereby Malaysian house-buyers will be exempted from stamp duties for purchase of residential units made between January to June 2019. Developers will also offer attractive discounts and packages for house purchases made during the period. HOC is open to all homebuyers to encourage property ownership and stimulate the Homeownership Campaign.

REGISTERED PROJECTS

(by State)

Johor

Kedah/Perlis

Kelantan

Melaka

Negeri Sembilan

Pahang

Penang

Perak

Selangor

Terengganu

WP Kuala Lumpur / Cyberjaya / Putrajaya

Sabah

Sarawak

(Kindly be informed, registration for projects is yet to be opened)

Conditions for Registration of Residential Properties
for Purpose of Stamp Duty Exemption

Exemption Period

Subject to Stamp Duty (Exemption) (No. 2) Order 2019 gazetted vide P.U. (A) 81 on 19 March 2019 and Stamp Duty (Exemption) (No. 3) Order 2019 gazetted vide P.U. (A) 82 on 19 March 2019, stamp duty exemptions are given for residential properties which are sold during the period between 1 January 2019 to 30 June 2019.

Eligibility for Exemption

Only ‘residential properties’, defined as houses, condominium units, apartments and flats including service apartments built and used as dwelling houses – with valid Developer’s Licence (DL) and Advertisement and Sale Permit (AP) or CCC (where applicable) are eligible to register, all other property types are not included in this exercise;
The service apartment must be for residential use only and cannot be converted for commercial activities;
Property price : RM300,001 to RM2.5 million (before discount);
It must be a sale from a developer to a purchaser or co-purchasers, all of whom are Malaysian citizens;
The stamp duty exemptions are applicable for the purchase of residential unit/s for Sale & Purchase Agreement executed between 1 January 2019 to 30 June 2019;
A minimum of 10% discount (from selling price) is applicable to all units that are not subjected to government price control.
Eligible properties in Peninsular Malaysia must be registered with REHDA Malaysia. Eligible properties in Sabah and Sarawak must be registered with SHAREDA (shareda.com) and/or SHEDA (www.sheda.org.my) respectively;
The stamp duty exemption is applicable to the following in relation to the purchase of residential property by an individual Malaysian citizen:
Instruments of Transfer

Instruments on Securing Loans

Enquiries

For further enquiries kindly contact REHDA Malaysia Secretariat:
Ms Zana / Ms Karen
E-mail: secretariat@rehda.com
Phone: +603 7803 2978

Frequently Asked Questions

General

1. What is Home Ownership Campaign (HOC) 2019?

2. What is the duration of the Campaign period?

3. What are the eligibility criteria for exemption?

The Sale and Purchase Agreement (SPA) must be signed within the Campaign period.
Exemptions are applicable only for residential properties (including serviced apartments) that are completed or under construction, and governed by the Housing Development Act with valid developer’s license (DL) and advertisement and sales permit (AP) and/or Certificate of Completion and Compliance (CCC).
Only residential properties in the primary market are eligible for the stamp duties exemptions, thus sale must be from a developer to a purchaser.
A minimum 10% discount must be given by the developer, provided that the residential units are not subject to Government price control.
The discount is given based on approved APDL pricing and must be reflected in the SPA.Eligible properties in Peninsular Malaysia must be registered with the Real Estate and Housing Developers’ Association (REHDA) Malaysia, while eligible properties in Sabah and Sarawak must be registered with Sabah Housing and Real Estate Developers Association (SHAREDA) and Sarawak Housing and Real Estate Developers’ Association (SHEDA) respectively.

4. What is the amount of the exemption on Instrument of Loan Agreement? Is it based on house price or loan amount?

Purchasers

1. Is there a list of registered projects under HOC?

2. I have signed an SPA in January, and I have paid the stamp duties on Instrument of Transfer and Instrument on Loan Agreement. Can I get a refund?

3. What if the developer did not give me a 10% discount?

4. Are there any fees that purchasers need to pay to be able to buy a house under HOC?

5. Can I purchase under a company name?

6. Can I purchase more than one residential unit and get stamp duties exemptions on all of them?

7. Am I entitled for the HOC waiver if I purchase a house from my friend (secondary market)?

Developers

1. Is the Campaign open for all developers?

2. I am a developer and I am interested to participate. What should I do?

3. What do I need to submit to register with REHDA?

Once registration opens, developers must submit:
i) Completed registration form in softcopy Microsoft Excel format. Any other formats or hardcopy will be rejected;
ii) A copy of APDL and/or CCC
iii) Registration fee – made payable to REHDA Malaysia
Registration fee differs between REHDA members and non-members and can be either by unit or project basis as follows:
Members’ rate is also applicable to:
i) Subsidiaries of a REHDA member;
ii) The holding company of a REHDA member; and
iii) Other subsidiaries of the same holding company where any one of the subsidiaries is a REHDA member.

* Please note that documentary evidence must be produced to verify the relationship between the REHDA member and participating developer e.g. ownership of shareholdings as certified by the company secretary or a copy of the latest annual returns submitted to the Registrar of Companies or both.
* Members with outstanding subscription arrears will be charged non-members’ rate.
* Registration fee is non-refundable

4. What is certification process?

Certification by REHDA Branches is required to be presented at any branches of the Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri, or LHDN) for the adjudication of stamp duties exemptions on Instrument of Transfer and Instrument on Loan Agreement.
Upon successful HOC registration, developers will be given a template of the certificate. The process begins following the purchase of registered unit(s), where among others, developers are required to submit four (4) copies of the certificate for each unit sold to the respective Branches where the project is located, along with relevant pages of the SPA.
Following approval, two (2) copies will be sent back to the developer, which will then be used as proof to LHDN that the unit transacted is entitled for the exemption.

5. What do I need to submit for the certification process for the unit(s) I have sold?

For the certification process of each units you have sold, you are required to submit:
i) Four (4) copies of the HOC certificate;
ii) Relevant pages of the SPA; and
iii) Certification fee to the respective REHDA Branches, depending on project location.
The fee for certification of properties sold and eligible for exemption is as follows:
i) House priced between RM300,001 to RM500,000 : RM100 per unit;
ii) House priced between RM500,001 to RM750,000 : RM150 per unit; and
iii) House priced above RM750,000 : RM200 per unit.
* Based on the selling price (before discount)

6. I am a REHDA member of Penang Branch with a development project in Kedah. Which Branch would undertake the certification process for my project?

7. Can I offer the 10% as a rebate to buyers instead of a discount?

8. I have unsold Bumiputera units and will be giving a Bumiputera discount. Should I give another 10% discount on top of the Bumiputera discount?

9. Can I offer the 10% discount to purchasers prior to registering my projects/units with REHDA for HOC?

10. My project is a serviced apartment complex (residential) with commercial title. Is it eligible for the stamp duties exemptions?

11. Are purchasers still eligible for stamp duties exemptions on the Instrument of Transfer and Instrument on Loan Agreement if the SPA is signed within the Campaign period, but stamped in July 2019?

The deadline for stamping of SPA is one month after the SPA is signed. Should the stamping take place after the deadline, a penalty will be imposed by LHDN for late stamping.
However, purchaser will still be eligible for the stamp duties exemptions, provided the developer registers the unit by Wednesday, 19 June 2019 at 6:00pm and submits the necessary documents for certification by Monday, 15 July 2019.

REHDA Malaysia
Wisma REHDA
No. 2C, Jalan SS5D/6, Kelana Jaya
47301 Petaling Jaya, Selangor Darul Ehsan

T : 03-7803 2978
F : 03-7803 5285
E : secretariat@rehda.com
W : www.rehda.com