What is Homeownership Campign?and how does it benefit me?
Homeownership Campaign ( HOC ) was an initiative introduced by the Malaysian Government to stimulate the housing sector and help ease Malaysian citizens in their journey to own a home. The campaign which runs in a limited time offer, provides benefits for those who are looking for a house, as such, the Malaysian Government offers stamp duties exemptions on the Instrument of Transfer and Instrument on Loan Agreement. There’s a lot of benefits that are available for grabs under the HOC campaign. However, those benefits are only applicable towards the housing projects and units which has already been registered for this campaign. The success and receptions towards the campaign had been proven successful that currently the government has agreed to extend the campaign further until May 2021.
Frequently Asked QuestionsFAQ
- The Sale and Purchase Agreement (SPA) must be signed within the Campaign period.
- Exemptions are applicable only for residential properties (including serviced apartments and SOHO) 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) or verified by KPKT (for developments of 4 units and below).
- 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 for projects under construction and registered selling price for completed projects. The discounted price 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.
- The amount of exemption on Instrument of Loan Agreement is 0.5% of the loan amount.
- However, please note that under HOC, the exemption is applicable for all houses with selling price from RM300,001 to RM2.5 million (price before discount).
Yes, provided that the 10% discount is reflected in the SPA and the developer registers the project/unit with REHDA/SHAREDA/SHEDA for HOC, However, you would have to apply to LHDN for your refund within the period stipulated in the Stamp Act 1949 (Act 378).
Not all residential projects/units by a developer are required to register under HOC. As such, we advise that purchasers speak to the developers involved for clarification before proceeding with your purchase.
No, purchasers are not imposed with any fee either by the developer, REHDA/SHAREDA/SHEDA or the Government. Only developers are imposed with the registration and certification fees.
No, purchases are for Malaysian individuals only.
Yes, there is no limitations on number of units that can be purchased.
No, the stamp duty waiver is only applicable for residential properties purchased from a developer (primary market) that are registered with REHDA, SHAREDA or SHEDA.
All developers whether REHDA members or non-members with residential properties in Peninsular Malaysia are invited to participate in the Campaign.
For developers in Sabah and Sarawak, registration must be made with SHAREDA and SHEDA respectively.
- Developers who are interested to participate must register their properties with REHDA Malaysia or SHAREDA/SHEDA respectively.
- The registration and certification procedures for units/projects in Peninsular Malaysia are accessible at ‘Process & Procedures’.
- Yes, developers are required to register their units under HOC 2020-2021 even if those units have been registered for HOC 2019. Details of the required documents to be submitted/attached is accessible at ’‘Process & Procedures’.
- Yes, member’s 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.
- 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.
- Please refer to the ‘Certification Process & Procedures’ for details.
- Online submission for HOC 2020-2021 certification exercise with REHDA Branches is accessible at HOC 2020-2021 Registration/Certification Online Portal that will be made available commencing 5 August 2020 . Physical copies of the required documents must be submitted to the respective REHDA Branch within 30-days from the SPA stamping date.
REHDA Kedah/Perlis would do the certification, as certification by Branch is based on the project location.
No. The SPA must clearly reflect the 10% discount. However, developers can offer other additional incentives on top of the discount to purchasers.
Developers do not have to give the additional 10% discount provided that the Bumiputera discount is set at a minimum of 10% from the selling price.
Yes. However, please ensure that the sold unit(s) are registered once the registration process begins and that the SPA is signed within the Campaign period.
The stamp duties exemptions for Instrument of Transfer and Instrument on Loan Agreement is applicable for all residential units governed by the Housing Development (Control and Licensing) Act 1966 (Act 118) and Regulations. If your service apartment and SOHO project possesses the required APDL issued by KPKT, you may register your units/project for HOC 2020-2021. The service apartment and SOHO must be for residential use only and cannot be converted for commercial activities.
- 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 before 15 April 2021 and submits the necessary documents to respective REHDA Branch for certification within 30-days of stamping or before 30 July 2021, whichever is earlier.
Please fill the ‘HOC 2020-2021 Logo Request Form‘ and we will revert in 7 working days.
*Reminder: The usage of the HOC 2020-2021 logo is at developers’ risk and REHDA will not be liable for any matters arising.