STAMP DUTY

What Is Stamp Duty ?

Stamp Duty is a tax chargeable on legal instruments/documents

Who Charges the Stamp Duty ?

Inland Revenue Board of Malaysia

What is the Consequences if the Instruments/Documents is Not Stamped ?

Unstamped Instruments/Documents will not be admissible as evidence in a court of law, nor will it be attended to by a Public Officer

What are the documents that are subject to Stamp Duty

Sale & Purchase

- Sale and Purchase Agreement

- Memorandum of Transfer (MOT)

- Loan Agreement

Rental

- Tenancy Agreement

What are the rates of Stamp Duty ?

1) Sale & Purchase

1.1 Sale and Purchase Agreement (SPA)

The Cost of Stamping the SPA is RM10 per copy

1.2 Memorandum of Transfer (MOT)

Malaysian Citizens, Malaysian PR and Malaysian Companies

	Stam Duty Rates
On the 1st RM100,000 or any part thereof	1%
RM100,001 to RM500,000 or any part thereof	2%
RM500,001 to RM1,000,000 or any part thereof	3%
RM1,000,001 and Above	4%

Foreign Individuals and Foreign Companies

Flat rate of 8% of total property value

Example : For Malaysian Citizens, Malaysian PR and Malaysian Companies, The Purchase Price

for the Property is RM1,500,000. The Stamp Duty for MOT payable is :

1st RM100,000 @ 1% : RM1,000

The Next RM400,000 @ 2% : RM8,000

The Next RM500,000 @ 3% : RM15,000

The Next RM500,000 @ 4% : RM20,000

Therefore, the total Stamp Duty for MOT payable for a RM1,500,000 property is RM44,000

Example : For Foreign individuals and Foreign Companies, The Purchase Price for the Property is RM1,500,000. The Stamp Duty for MOT payable is :

RM1,500,000 @ 8% : RM120,000

Therefore, the total Stamp Duty for MOT payable for a RM1,500,000 property is RM120,000

1.3 Loan Agreement

0.5% of the Loan Amount

Rental

Tenancy Agreement

The Formula to Calculate the Stamp Duty for Tenancy Agreement is as follow :

* Tenancy not exceeding 1 year : RM1 per RM250 of annual rent

* Tenancy exceeding 1 year but not exceeding 3 years : RM3 per RM250 of annual rent

* Tenancy exceeding 3 years or indefinite period : RM7 per RM250 of annual rent

Each Copy : RM10.00 per copy

Example : The Agreed Rental is RM5,000 and the tenancy duration is 2 years

Therefore, the stamping fee for a tenancy agreement with monthly rental of RM5,000.00 for 2 years is RM1,440.00. For additional copy of the stamp tenancy agreement will be additional RM10.00 for each copy

Timeline

Instruments/documents executed in Malaysia must be stamped within 30 days from the date of execution. If the Instruments/documents are executed outside Malaysia, the instruments/documents must be stamped within 30 days after it has been first received in Malaysia.

Penalty

If the Instruments/documents is not stamped within the stipulated timeline, the penalty are as follow:

- Within 3 Months after the due date for stamping : RM25 or 5% of the deficient duty, whichever is greater

- Within the 3rd Month and 6th Month after the due date for stamping : RM50 or 10% of the

deficient duty, whichever is greater

- After 6 Months after the due date for stamping : RM100 or 20% of the deficient duty, whichever is greater