Ng Law Firm | Trademark and Industrial Design Agent
2 offices
Ng Law Firm is one of the fastest growing law firm based in the vibrant city of Penang, Malaysia. At the core of our practice, we specialize in a wide range of legal areas, ensuring comprehensive support for our clients in navigating the complexities of the legal landscape.
Our Expertise:
Corporate & Commercial:
- Corporate Governance
- ESG (Environmental, Social, Governance)
- Data Privacy & Protection
- Regulatory & Compliance
- Employment & Workforce Restructuring
- Capital Markets
- Corporate Restructuring
- Commercial Contracts (e.g., Manufacturing Agreements)
- Family Business & Private Wealth Advisory
- Mergers & Acquisitions (M&A)
Conveyancing & Property:
- Transfer of Property
- Loan, Banking & Finance
- Tenancy & Lease
- Sale & Purchase of Property
- Strata Management (JMB) Dispute
- Construction & Project
Civil Litigation:
- Bankruptcy and Insolvency
- Divorce Proceedings
- Will & Probate
- Labour, Employment & Industrial Relations
- Shareholders’ Disputes
- Negligence
- Product Liability
- Consumer Tribunal
- Consumer Right Protection
- Defamation & Libel
- Debt Recovery
- Civil Fraud
Intellectual Property, Data & Technology:
- Trademark Registration
- Trademark Infringement
- Trademark Renewal
- Data, Privacy & Cybersecurity
- PDPA - Personal Data Protection Act
- Copyright
- Information Technology
- Licensing & Franchising
Firm Information
Founded
2023
Team Size
5 people
Offices
2 locations
Our Offices
Find our offices across different locations to serve you better.
Bayan Lepas
Malaysia
92-2 Bayan Bay, Persiaran Bayan Indah,
Languages
Practice Areas
Tax Increment Financing
Financial Services Regulation
Government Relations & Lobbying
+59 more
Kuala Lumpur
Malaysia
9 Jalan Mesui, Bukit Bintang, Kuala Lumpur, MY 50200
Languages
Practice Areas
Bankruptcy & Debt
Bankruptcy
Debt & Collection
+59 more
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Successful outcomes we've achieved for our clients
Gifting a property: Property transfer for FREE through gesture of love and affection
Real Estate
Gifting a property: Property transfer for FREE through gesture of love and affection
Real Estate
Deed of Gift for the Property
A deed of gift serves as a legal instrument outlining the transfer of property ownership to another party, wherein the consideration for the conveyance is rooted in sentiments of love and affection. The process of legally transferring property ownership to family members entails thorough paperwork and adherence to specific procedures.
This article aims to elucidate and furnish essential information to facilitate a seamless transfer of property ownership to family members.
Stamp Duty Exemption for Love and Affection Transfer
The Stamp Duty (Exemption) (No. 10) Order 2007 (P.U. (A) 420) grants full exemption of stamp duty on any instrument of transfer of immovable property between spouses.
In the 2023 Budget proposal, it was suggested that all instruments of transfer of property based on love and affection between parents and children, or grandparents and grandchildren, should receive a 100% stamp duty exemption for the first RM1 million of the market value of the immovable property. Any amount exceeding this threshold would be subject to ad valorem stamp duty, with a 50% remission on the duty imposed.
To enact this proposal, the Stamp Duty (Exemption) (No. 3) Order 2023 [P.U.(A) 178] was gazetted on 9 June 2023, and is considered effective from 1 April 2023.
The Order exempts stamp duty for all instruments of transfer involving immovable property as voluntary dispositions inter vivos executed between specified relationships as outlined in the table below.
| Donor | Recipient | Exemption Rate |
| Husband | Wife | 100% |
| Wife | Husband | 100% |
(a) Mother or father; or (b) Mother and father | Child | 100% (limited to RM1 million) |
| Child | (a) Mother or father; or (b) Mother and father | 100% (limited to RM1 million) |
(a) Grandfather or grandmother; or (b) Grandfather and grandmother | Grandchild | 100% (limited to RM1 million) |
| Grandchild | (a) Grandfather or grandmother; or (b) Grandfather and grandmother | 100% (limited to RM1 million) |
The exemption will only be applicable if:
(a) The instrument of transfer is executed on or after 1 April 2023, and
(b) The recipient is a Malaysian citizen
The outstanding amount of the market value of the immovable property is subject to a stamp duty rate based on ad valorem, as indicated in the provided table.
| Consideration or Market Value of Property | Scale of Fee |
| First RM100,000 | 1% |
| RM100,001 to RM500,000 | 2% |
| RM500,001 to RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
Real Property Gains Tax (“RPGT”) Exemption for Love and Affection Transfer
RPGT is a tax imposed on the profit gained from the disposal of property, payable by the party selling or giving the property.
Paragraph 12 of Schedule 2 in the RPGT Act 1976 states that when an asset is given as a gift, the disposal is considered at the market value of the asset. However, if the donor and recipient are closely related, such as spouses, parents and children, or grandparents and grandchildren, and the gift is made within five years of the asset’s acquisition, no gain or loss is deemed for the donor and the recipient is considered to have acquired the asset at the same price as the donor’s acquisition price plus permitted expenses. Therefore, no RPGT is payable.
Nevertheless, to qualify for this exemption, the transferor must be a Malaysian citizen and provide proof of birth certificate when submitting RPGT Forms to the Inland Revenue Board (IRB). It is also important to note that transfers between siblings, friends, boyfriends and girlfriends do not qualify for RPGT exemption.
Duration for Love and Affection Transfer
The duration for processing property transfers through love and affection transfers depends on the type and circumstances of the property. It is recommended to consult a lawyer to obtain more specific details based on the characteristics of the property in question.
Disclaimer: This article is for informative and educative purposes only and shall not be relied upon to constitute legal or professional advice. Ng Law Firm shall not hold any form of liability wheresoever and in whatsoever circumstances including but not limited to due to the amendment of legal provisions in the event any person uses the article’s information. Should you need any help and legal advice, you may reach out to Ng Law Firm at +601154304970 or +6046024970. You may also email your enquiry to penang@nglaw.com.my.RPGT is a tax imposed on the profit gained from the disposal of property, payable by the party selling or giving the property.
5 / 5
09/04/2024
Exceptional service from Ng Law Firm! All the lawyers were professional and were able to answer to my questions and concerns promptly.