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 Commercial title, HDA status (can MOT be exempted?

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TSderick8860
post Dec 20 2018, 02:05 PM, updated 5y ago

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Hi, if a first time home buyer buy a commercial title with HDA status property (service apartment), can he/she be exempted for paying MOT for first 300k if the property priced beliw 500k?

Thank you.

AskarPerang
post Dec 20 2018, 03:07 PM

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Yes. Applicable for service apartment / soho. All those are commercial land title but use for residential purpose.
TSderick8860
post Dec 20 2018, 03:40 PM

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QUOTE(AskarPerang @ Dec 20 2018, 03:07 PM)
Yes. Applicable for service apartment / soho. All those are commercial land title but use for residential purpose.
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Thanks for the info! 👍🏼
TSderick8860
post Apr 5 2019, 12:30 PM

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QUOTE(AskarPerang @ Dec 20 2018, 03:07 PM)
Yes. Applicable for service apartment / soho. All those are commercial land title but use for residential purpose.
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Have you come across anyone who got stamp duty exemption on service apartment or soho?
TSderick8860
post Apr 6 2019, 04:33 PM

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Ok, i got conned by being too naive.

Talk is cheap.
hanhanhan
post Apr 7 2019, 06:51 PM

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QUOTE(derick8860 @ Apr 5 2019, 12:30 PM)
Have you come across anyone who got stamp duty exemption on service apartment or soho?
*
prior to 2019 - yes.

now - not sure yet because projects are under construction, will only know if able to succeed in waiver once strata title is issued (usually upon project completion).
TSderick8860
post Apr 7 2019, 07:23 PM

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QUOTE(hanhanhan @ Apr 7 2019, 06:51 PM)
prior to 2019 - yes.

now - not sure yet because projects are under construction, will only know if able to succeed in waiver once strata title is issued (usually upon project completion).
*
Is there any stamp duty exemption case on SOHO prior to 2019?

Thanks.
beebee1314
post Jun 24 2019, 06:33 PM

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Hi all. For commercial HDA, will the quit rent, assessment tax, water and electricity become expensive?
TSderick8860
post Dec 25 2020, 01:01 AM

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it has been about 2 years since i started this topic, i bought a service apartment under HDA in early 2019, expecting to be able to get the MOT exempted under "Stamp Duty (Exemption) (No. 7) Order 2018" for the first time home buyer.
www.malaysianbar.org.my/cms/upload_files/document/Circular%20No%20001-2019.pdf


few days after i signed my SPA, the surat akuan came out stating that service apartment will be excluded from this stamp duty exemption.
www.malaysianbar.org.my/cms/upload_files/document/Circular%20No%20033-2019.pdf


before i proceed buying this property, i have asked & confirmed many times with lawyer side & people in this forum, even during the SPA signing lawyer tell me can get the exemption no problem...


i really pissed off when i first get to know the MOT cannot be exempted, as it cost like another rm20,000 out of nowhere sad.gif


after i calmed myself and do some checkings, i cant/dont really blame them, as during the "Stamp Duty (Remission) Order 2016", service apartment is not excluded from the remission in the surat akuan.
www.malaysianbar.org.my/cms/upload_files/document/Circular%20No%20037-2017.pdf


next year i will be getting my key, soon then i have to do the transfer and pay my mot, but now i still feel quite unacceptable.


the definition of "residential property" is the same in Stamp Duty (Remission) Order 2016 and Stamp Duty (Exemption) (No. 7) Order 2018, “residential property” means a house, a condominium unit, an apartment or a flat purchased or obtained solely to be used as a dwelling house.


when the definition is the same in both orders, why the earlier one doesnt exclude service apartment, but the later one exclude service apartment? shouldnt the earlier one be like precedent for the later one?


why TNB allow service apartment under HDA changed to residential rate?


i thought HDA status only given to residential property? if a service apartment got the HDA status, it should be treated as residential property right?


why not the definition of "residential property" means property under residential title? straightforward and no misleading, since the surat akuan just exclude only all the non residential titled properties.


speaking of fairness, why the 10th or 20th time house buyer can get stamp duty exemption on service apartment under HOC? why they want bully the first time homebuyer who supporting the government policy?


all this while i have been searching on google, hoping that the surat akuan had been amended or hoping some expertise did raised up this issue.


i really think first time homebuyer buying service apartment should get stamp duty exemption under Stamp Duty (Exemption) (No. 7) Order 2018.


anyone please advise what can i do? i personally think such case has high chance of winning if bring it to the court, but i dont think it worth the time and money.


appreciate if anyone can give me good advise, thank you very much!

This post has been edited by derick8860: Dec 27 2020, 03:41 PM
YeohKW
post Dec 26 2020, 02:07 PM

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QUOTE(derick8860 @ Dec 20 2018, 02:05 PM)
Hi, if a first time home buyer buy a commercial title with HDA status property (service apartment), can he/she be exempted for paying MOT for first 300k if the property priced beliw 500k?

Thank you.
*
SoHo yes but need to proof that the property is purchased for residential purposes and not for commercial use.

All fees are higher but again, if can proof that the unit for own use and not commercial, can apply for residential rate too.

If you are buying from developer, get assistance from the sales team on this they can advise u better based on the local practice. Just make sure whatever they said you write it down or best ask them to write it for u so you will have a copy of record.

This post has been edited by YeohKW: Dec 26 2020, 02:08 PM
TSderick8860
post Dec 26 2020, 04:28 PM

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QUOTE(YeohKW @ Dec 26 2020, 02:07 PM)
SoHo yes but need to proof that the property is purchased for residential purposes and not for commercial use.

All fees are higher but again, if can proof that the unit for own use and not commercial, can apply for residential rate too.

If you are buying from developer, get assistance from the sales team on this they can advise u better based on the local practice. Just make sure whatever they said you write it down or best ask them to write it for u so you will have a copy of record.
*
user posted image

you see this sad.gif

the definition of "residential property" is like this..

“residential property” means a house, a condominium unit, an apartment or a flat purchased or obtained solely to be used as a dwelling house.

my service apartment under HDA schedule H, only property used as dwelling house can get HDA status right..

if following the order/law, i should be able to get the mot exemption, but the problem is, surat akuan as attached above terus exclude soho & service apartment from claming the exemption sad.gif


YeohKW
post Dec 26 2020, 06:02 PM

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QUOTE(derick8860 @ Dec 26 2020, 04:28 PM)
user posted image

you see this  sad.gif

the definition of "residential property" is like this..

“residential property” means a house, a condominium unit, an apartment or a flat purchased or obtained solely to be used as a dwelling house.

my service apartment under HDA schedule H, only property used as dwelling house can get HDA status right..

if following the order/law, i should be able to get the mot exemption, but the problem is, surat akuan as attached above terus exclude soho & service apartment from claming the exemption  sad.gif
*
Try check with developer and see if they can do anything about it? By the way, which developer you dealing with?
Is it under HOC 2020 - 2021 purchase? If yes, then can refer here: http://rehda.com/hoc2020-2021/

Or maybe you can give Redha a call to verify too.
TSderick8860
post Dec 26 2020, 09:46 PM

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QUOTE(YeohKW @ Dec 26 2020, 06:02 PM)
Try check with developer and see if they can do anything about it? By the way, which developer you dealing with?
Is it under HOC 2020 - 2021 purchase? If yes, then can refer here: http://rehda.com/hoc2020-2021/

Or maybe you can give Redha a call to verify too.
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thank you for trying to help me out, but will not be able to get it under HOC, the only way will be via "Stamp Duty (Exemption) (No. 7) Order 2018".

appreciate it, thank you! thumbsup.gif
YeohKW
post Dec 26 2020, 11:24 PM

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QUOTE(derick8860 @ Dec 26 2020, 09:46 PM)
thank you for trying to help me out, but will not be able to get it under HOC, the only way will be via "Stamp Duty (Exemption) (No. 7) Order 2018".

appreciate it, thank you!  thumbsup.gif
*
you mean the property you bought is below RM300,000? I read again your initial post and I think the best way is to talk to your SPA lawyer again on this matter. The law applicable at the time you sign your SPA. if it's already being updated, then you still have chance to appeal for the exemption. but if not, then it will be pretty much impossible.

This year I got a client also face similar issue but with RPGT. Initially he needed to pay about Rm60K ++ for RPGT but after appealing due to the changes of RPGT rate, he ended up paying only about RM20K plus

TSderick8860
post Dec 27 2020, 12:19 AM

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QUOTE(derick8860 @ Dec 25 2020, 01:01 AM)
it has been about 2 years since i started this topic, i bought a service apartment under HDA in early 2019, expecting to be able to get the MOT exempted under "Stamp Duty (Exemption) (No. 7) Order 2018" for the first time home buyer.
[https://www.malaysianbar.org.my/cms/upload_files/document/Circular%20No%20001-2019.pdf]
few days after i signed my SPA, the surat akuan came out stating that service apartment will be excluded from this stamp duty exemption.
[https://www.malaysianbar.org.my/cms/upload_files/document/Circular%20No%20033-2019.pdf]
before i proceed buying this property, i have asked & confirmed many times with lawyer side & people in this forum, even during the SPA signing lawyer tell me can get the exemption no problem...
i really pissed off when i first get to know the MOT cannot be exempted, as it cost like another rm20,000 out of nowhere  sad.gif
after i calmed myself and do some checkings, i cant/dont really blame them, as during the "Stamp Duty (Remission) Order 2016", service apartment is not excluded from the remission in the surat akuan.
[https://www.malaysianbar.org.my/cms/upload_files/document/Circular%20No%20037-2017.pdf]
next year i will be getting my key, soon then i have to do the transfer and pay my mot, but now i still feel quite unacceptable.
the definition of "residential property" is the same in Stamp Duty (Remission) Order 2016 and Stamp Duty (Exemption) (No. 7) Order 2018, “residential property” means a house, a condominium unit, an apartment or a flat purchased or obtained solely to be used as a dwelling house.
when the definition is the same in both orders, why the earlier one doesnt exclude service apartment, but the later one exclude service apartment? shouldnt the earlier one be like precedent for the later one?
why TNB allow service apartment under HDA changed to residential rate?
i thought HDA status only given to residential property? if a service apartment got the HDA status, it should be treated as residential property right?
why not the definition of "residential property" means property under residential title? straightforward and no misleading, since the surat akuan just exclude only all the non residential titled properties.
speaking of fairness, why the 10th or 20th time house buyer can get stamp duty exemption on service apartment under HOC? why they want bully the first time homebuyer who supporting the government policy?
all this while i have been searching on google, hoping that the surat akuan had been amended or hoping some expertise did raised up this issue.
i really think first time homebuyer buying service apartment should get stamp duty exemption under Stamp Duty (Exemption) (No. 7) Order 2018.
anyone please advise what can i do? i personally think such case has high chance of winning if bring it to the court, but i dont think it worth the time and money.
appreciate if anyone can give me good advise, thank you very much!
*
QUOTE(YeohKW @ Dec 26 2020, 11:24 PM)
you mean the property you bought is below RM300,000? I read again your initial post and I think the best way is to talk to your SPA lawyer again on this matter. The law applicable at the time you sign your SPA. if it's already being updated, then you still have chance to appeal for the exemption. but if not, then it will be pretty much impossible.

This year I got a client also face similar issue but with RPGT. Initially he needed to pay about Rm60K ++ for RPGT but after appealing due to the changes of RPGT rate, he ended up paying only about RM20K plus
*
my current situation is different from the first post, you may refer to the long written post above then you would understand.

that time i opened this thread just to confirm commercial titled property under HDA (service apartment) able to get stamp duty exemption, as the people here and lawyer side also said can get because it is for dwelling.

i bought and signed in early 2019, under Stamp Duty (Exemption) (No. 7) Order 2018, first time homebuyer can get stamp duty exemption for buying residential property of value from rm300,000 to rm1,000,000.

to claim this exemption, we have to submit statutory declaration, but the statutory declaration exclude service apartment from claiming it, as shown in the photo that i attached in the post above.
YeohKW
post Dec 27 2020, 09:38 AM

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QUOTE(derick8860 @ Dec 27 2020, 12:19 AM)
my current situation is different from the first post, you may refer to the long written post above then you would understand.

that time i opened this thread just to confirm commercial titled property under HDA (service apartment) able to get stamp duty exemption, as the people here and lawyer side also said can get because it is for dwelling.

i bought and signed in early 2019, under Stamp Duty (Exemption) (No. 7) Order 2018, first time homebuyer can get stamp duty exemption for buying residential property of value from rm300,000 to rm1,000,000.

to claim this exemption, we have to submit statutory declaration, but the statutory declaration exclude service apartment from claiming it, as shown in the photo that i attached in the post above.
*
Which party gave you the statutory declaration form? Cos in the released federal government gazette there's no mention about it. Refer here: http://www.federalgazette.agc.gov.my/outpu...1_PUA%20378.pdf

Maybe you can check with your lawyer again or accountant on this matter. As long as you can proof that the property will be use for own stay and not for commercial use, then you have a ground to discuss. But have you check with the developer on this matter?

And i went and check your earlier post and you mentioned you bought the property in early 2019. Can I know when is the actual date you sign your SPA?
e-lite
post Dec 27 2020, 02:56 PM

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QUOTE(YeohKW @ Dec 27 2020, 09:38 AM)
Which party gave you the statutory declaration form? Cos in the released federal government gazette there's no mention about it. Refer here: http://www.federalgazette.agc.gov.my/outpu...1_PUA%20378.pdf

Maybe you can check with your lawyer again or accountant on this matter. As long as you can proof that the property will be use for own stay and not for commercial use, then you have a ground to discuss. But have you check with the developer on this matter?

And i went and check your earlier post and you mentioned you bought the property in early 2019. Can I know when is the actual date you sign your SPA?
*
Referring to your document that you posted:-

(4) Permohonan bagi pengecualian di bawah subperenggan (1) hendaklah disertakan dengan surat akuan berkanun di bawah Akta Akuan Berkanun 1960 [Akta 783] oleh individu yang disebut dalam subperenggan (1) yang mengesahkan bahawa individu itu tidak pernah memiliki apa-apa harta kediaman termasuk suatu harta kediaman yang diperoleh secara pewarisan atau pemberian, yang dipegang sama ada secara individu atau bersama.

(4) The application for the exemption under subparagraph (1) shall be accompanied by a statutory declaration under the Statutory Declarations Act 1960 [Act 783] by the individual referred to in subparagraph (1) confirming that the individual has never owned any residential property including a residential property which is obtained by way of inheritance or gift, which is held either individually or jointly
TSderick8860
post Dec 27 2020, 04:11 PM

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QUOTE(YeohKW @ Dec 27 2020, 09:38 AM)
Which party gave you the statutory declaration form? Cos in the released federal government gazette there's no mention about it. Refer here: http://www.federalgazette.agc.gov.my/outpu...1_PUA%20378.pdf

Maybe you can check with your lawyer again or accountant on this matter. As long as you can proof that the property will be use for own stay and not for commercial use, then you have a ground to discuss. But have you check with the developer on this matter?

And i went and check your earlier post and you mentioned you bought the property in early 2019. Can I know when is the actual date you sign your SPA?
*
i think LHDN prepared the statutory declaration form, i have included the link in the earlier long post, or you may find the statutory declaration in the link below.

www.malaysianbar.org.my/cms/upload_files/document/Circular%20No%20033-2019.pdf

i signed in January 2019, before this statutory declaration is published.

i will talk to lawyer again, but i just hope anyone with experiences in such case can guide me.
YeohKW
post Dec 27 2020, 04:31 PM

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QUOTE(derick8860 @ Dec 27 2020, 04:11 PM)
i think LHDN prepared the statutory declaration form, i have included the link in the earlier long post, or you may find the statutory declaration in the link below.

www.malaysianbar.org.my/cms/upload_files/document/Circular%20No%20033-2019.pdf

i signed in January 2019, before this statutory declaration is published.

i will talk to lawyer again, but i just hope anyone with experiences in such case can guide me.
*
As long as it's signed within 1 Jan 2019 to 30 June 2019, you can appeal for it. I think your lawyer will be able to fight for you. Good luck.
TSderick8860
post Dec 27 2020, 04:36 PM

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QUOTE(YeohKW @ Dec 27 2020, 04:31 PM)
As long as it's signed within 1 Jan 2019 to 30 June 2019, you can appeal for it. I think your lawyer will be able to fight for you. Good luck.
*
ok hopefully can get the exemption, thank you for your help and advice! thumbsup.gif

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