Stamp Duty

In Malaysia, Stamp duty is a tax levied on a variety of written instruments specifies in the First Schedule of Stamp Duty Act 1949. In general term, stamp duty will be imposed to legal, commercial and financial instruments.

There are two types of Stamp Duty namely ad valorem duty and fixed duty. For the ad valorem duty, the amount payable will vary depending on type and value of the instruments.

An instrument is required to be stamped within 30 days of its execution if executed within Malaysia. If the instrument is executed outside Malaysia, it must be stamped within 30 days after it has been first received in Malaysia.

Examples of Instruments Subjected to Stamp Duty

  1. Real Properties Transfer
  2. Share Transfer
  3. Business Transfer
  4. Rental or Lease
  5. Security
  6. Selling of Annuity
  7. General Stamping
  8. Section 15/15A relief
  9. Compound Duty payment
  10. Replica
  11. Repayment
  12. Appeal

Penalty

If the instrument is not stamped within the period stipulated, a penalty of.

  • RM25.00 or 5% of the deficient duty, whichever is the greater, if stamped within 3 months after the time for stamping;
  • RM50.00 or 10% of the deficient duty, whichever is the greater, if stamped after 3 months but not later than 6 months after the time for stamping;
  • RM100.00 or 20% of the deficient duty, whichever is the greater, if stamped after 6 months from the time for stamping;

may be imposed.

Stamp Duty Payment

Stamp duty payment can be made through the following method.

  1. Cash if the duty does not exceed RM100
  2. Revenue Stamp if the duty does not exceed RM500
  3. Money Order, Solicitor`s Cheque or Bank Draft, made payable to the Collector of Stamp Duty and sent together with the relevant instrument to the stamp duty office by hand or through registered post