TUTORIAL EXERCISES
1. With reference to Stamp Act 1949 and using
appropriate examples, explain the following stamp duty; a. Ad Valorem
duty. b. Fixed duty
2. With reference to Budget 2017, explain two (2) types of exemptions that are available to the first time house buyers.
CALCULATION EXERCISES
Calculate
the stamp duty on a residential unit which has been transacted for
RM550,000 in April 2017. The property conveys a 99 years leasehold. The
property is the first residential unit bought by the purchaser.
The Valuation and Property Services Department in Shah Alam reported the market value of the unit is RM530,000.
Observe all exemptions relief and remission that may applicable to your taxes calculation
1. Discuss the duties chargeable on the transaction of properties. You may incorporate appropriate example in your discussion. (15 marks)
2. After a year of searching for a right property, Kevin finally decided to purchase his first house in Bangi. He signed Sale & Purchase Agreement on 2 January 2017 for RM500,000.00. He was granted a housing loan at 90% of the purchase price to facilitate his purchase.
Jabatan Penilaian Dan Perkhidmatan Harta (JPPH) Bangi, confirmed that the market value of the property is RM520,000.00.
In February 2017, Kevin agreed to Miss Wong’s offer to pay RM1,500.00 per month. The tenancy agreement was signed for a tenure of 2 years commencing in March 2017.
The market rental of the property was RM1,800 per month and landlord responsible for all outgoings. Miss Wong is responsible to prepare the tenancy agreement but did not send it for stamping within the time required. She sent the documents for stamping three months later.
For documentation purposes, THREE(3) duplicate copies of the Sale and Purchase Agreement, THREE(3) duplicate copies of the Housing Loan agreement and a duplicate copies of Tenancy Agreement had been prepared.
All taxes are levied by the persons liable for the duties in accordance to the normal practice.
Based on the above scenario, relevant provisions in the given acts and exemptions available, solve the followings:-
i. identify and calculate the stamp duties payable by Kevin. (20 marks)
ii. identify ad calculate stamp duties payable by the tenant Miss Wong (5 marks)
