{"id":18880,"date":"2025-12-30T09:53:46","date_gmt":"2025-12-30T09:53:46","guid":{"rendered":"https:\/\/curlec.blog.razorpay.in\/blog\/?p=18880"},"modified":"2026-01-22T08:59:02","modified_gmt":"2026-01-22T08:59:02","slug":"stamp-duty-in-malaysia","status":"publish","type":"post","link":"https:\/\/curlec.com\/blog\/guides\/stamp-duty-in-malaysia\/","title":{"rendered":"Stamp Duty in Malaysia: Rates, Exemptions &amp; Penalties"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">When you sign a contract in Malaysia\u2014whether it is a tenancy agreement, a property purchase, or a business loan\u2014you will invariably come across the term <strong>Stamp Duty<\/strong>. In the eyes of the law, a document is generally not admissible as evidence in court unless it has been properly &#8220;stamped.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Stamp duty is a tax imposed by the <strong>Inland Revenue Board of Malaysia (LHDN)<\/strong> on legal, commercial, and financial instruments. It is the process of certifying a document to give it legal weight and ensuring that the government receives its portion of the transaction tax.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This guide provides a clear breakdown of the current stamp duty rates for 2024\/2025, common exemptions for homeowners and businesses, and the penalties you might face for missing the stamping deadline.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>What It Is:<\/strong> A tax on written documents, not on transactions or people.<\/li>\n\n\n\n<li><strong>Ad Valorem vs. Fixed:<\/strong> Rates are either based on the value of the transaction (Ad Valorem) or a flat fee (Fixed).<\/li>\n\n\n\n<li><strong>Stamping Deadline:<\/strong> Documents must be stamped within <strong>30 days<\/strong> of execution (signing) within Malaysia.<\/li>\n\n\n\n<li><strong>Digital Evolution:<\/strong> Physical revenue stamps are largely replaced by the <strong>STAMPS portal<\/strong> managed by LHDN.<\/li>\n\n\n\n<li><strong>2024\/2025 Exemptions:<\/strong> Significant relief remains for first-time homebuyers and property transfers between family members (Love and Affection).<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Stamp Duty?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Stamp duty is governed by the <strong>Stamp Act 1949<\/strong>. There are two types of duties:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Fixed Duties:<\/strong> Set amounts that do not vary with the value of the document (e.g., RM10 for a subsidiary agreement or power of attorney).<\/li>\n\n\n\n<li><strong>Ad Valorem Duties:<\/strong> Calculated based on the value of the consideration or the market value of the subject matter (e.g., property transfers, share transfers, or loan agreements).<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Common Stamp Duty Rates in Malaysia (2024\/2025)<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The rate you pay depends heavily on the type of document being stamped.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Property Transfer (Instrument of Transfer\/MOT)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For the transfer of real estate, the rates are tiered based on the property price:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Property Value (RM)<\/strong><\/td><td><strong>Stamp Duty Rate<\/strong><\/td><\/tr><tr><td>First RM100,000<\/td><td>1%<\/td><\/tr><tr><td>RM100,001 to RM500,000<\/td><td>2%<\/td><\/tr><tr><td>RM500,001 to RM1,000,000<\/td><td>3%<\/td><\/tr><tr><td>Above RM1,000,000<\/td><td>4%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Share Transfers<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For the transfer of shares in a private limited company (Sdn Bhd), the rate is:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>RM3 for every RM1,000<\/strong> (or 0.3%) of the consideration or market value, whichever is higher.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Loan Agreements<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For most loan agreements or service agreements:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>0.5%<\/strong> of the total loan amount (RM5 for every RM1,000).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Tenancy Agreements<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The duty for tenancy depends on the annual rent and the duration of the lease:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Lease Duration<\/strong><\/td><td><strong>Rate for every RM250 of annual rent (above RM2,400)<\/strong><\/td><\/tr><tr><td>Less than 1 year<\/td><td>RM1.00<\/td><\/tr><tr><td>1 to 3 years<\/td><td>RM2.00<\/td><\/tr><tr><td>More than 3 years<\/td><td>RM4.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Important Exemptions and Remissions (Current for 2025)<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Malaysian government provides several exemptions to stimulate the property market and support family wealth transfers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. First-Time Homebuyers<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As of the latest budget updates, first-time buyers enjoy:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>100% exemption<\/strong> on stamp duty for the Instrument of Transfer and Loan Agreement for properties priced up to <strong>RM500,000<\/strong>.<\/li>\n\n\n\n<li>This exemption is part of the government&#8217;s ongoing effort to increase home ownership among the youth and middle-income groups.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Transfer Between Family (Love and Affection)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Transfers of property between certain family members enjoy significant remissions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Husband to Wife (or vice versa):<\/strong> 100% exemption.<\/li>\n\n\n\n<li><strong>Parent to Child (or vice versa):<\/strong> 100% exemption, limited to the <strong>first RM1 million<\/strong> of the property&#8217;s value. For any amount exceeding RM1 million, the remaining balance is taxed at the standard ad valorem rate, but the duty is reduced by 50%.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Business Restructuring<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Stamp duty remissions are available for certain types of corporate restructurings, mergers, or share transfers within a group of companies, subject to Section 15 or 15A of the Stamp Act 1949 and specific LHDN guidelines.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Cost of Delay: Penalties for Late Stamping<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Stamping must be completed within <strong>30 days<\/strong> of the document being signed. If you miss this window, the following penalties apply under Section 47A of the Stamp Act:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Within 3 months late:<\/strong> RM25.00 or 5% of the duty, whichever is higher.<\/li>\n\n\n\n<li><strong>Between 3 to 6 months late:<\/strong> RM50.00 or 10% of the duty, whichever is higher.<\/li>\n\n\n\n<li><strong>More than 6 months late:<\/strong> RM100.00 or 20% of the duty, whichever is higher.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Did You Know?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Malaysia has fully transitioned to the <strong>Electronic Result Slip<\/strong> system. You no longer need to visit an LHDN office for physical stamping. You submit your document via the <strong>STAMPS portal<\/strong>, pay the duty online, and download a digital certificate that carries a QR code for verification by lawyers and banks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Ready to Streamline Your Business Finances?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Maintaining a clean legal and financial trail is essential for long-term business health. From stamping agreements to reconciling your daily sales, digital tools are the key to efficiency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Explore Financial Solutions from <a href=\"https:\/\/curlec.com\/?utm_source=blog&amp;utm_medium=blog-cta&amp;utm_campaign=malaysia-article\">Razorpay Curlec<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion: Don&#8217;t Overlook the Details<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Stamp duty is a critical step in &#8220;legalizing&#8221; your business transactions. Whether you are a founder signing a <strong>Sdn Bhd<\/strong> shareholder agreement or a landlord finalizing a lease, ensuring your documents are stamped correctly and on time protects your legal rights. By understanding the tiered rates and utilizing current government exemptions, you can manage your transaction costs effectively.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently Asked Questions (FAQs)<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Who usually pays the stamp duty?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">While it can be negotiated, the standard practice in Malaysia is:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Property:<\/strong> The Buyer pays.<\/li>\n\n\n\n<li><strong>Tenancy:<\/strong> The Tenant pays.<\/li>\n\n\n\n<li><strong>Loan:<\/strong> The Borrower pays.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Is a document valid if it is not stamped?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The document remains a valid contract, but it <strong>cannot be produced in court as evidence<\/strong> until it is stamped. You would have to pay the original duty plus the accumulated late penalties before the court will admit the document.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Can I stamp a document myself?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, individuals and business owners can register for an account on the <strong>LHDN STAMPS portal<\/strong> to submit documents for assessment and pay the duty via FPX.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. What is the difference between Stamp Duty and SST?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>SST (Sales and Service Tax)<\/strong> is a tax on the consumption of goods and services. <strong>Stamp Duty<\/strong> is a tax on the legal instruments (documents) that facilitate those transactions. They are two separate taxes managed by different departments.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you sign a contract in Malaysia\u2014whether it is a tenancy agreement, a property purchase, or a business loan\u2014you will invariably come across the term Stamp Duty. In the eyes of the law, a document is generally not admissible as evidence in court unless it has been properly &#8220;stamped.&#8221; Stamp duty is a tax imposed [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":18989,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-18880","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides"],"_links":{"self":[{"href":"https:\/\/curlec.com\/blog\/wp-json\/wp\/v2\/posts\/18880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/curlec.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/curlec.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/curlec.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/curlec.com\/blog\/wp-json\/wp\/v2\/comments?post=18880"}],"version-history":[{"count":1,"href":"https:\/\/curlec.com\/blog\/wp-json\/wp\/v2\/posts\/18880\/revisions"}],"predecessor-version":[{"id":18882,"href":"https:\/\/curlec.com\/blog\/wp-json\/wp\/v2\/posts\/18880\/revisions\/18882"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/curlec.com\/blog\/wp-json\/wp\/v2\/media\/18989"}],"wp:attachment":[{"href":"https:\/\/curlec.com\/blog\/wp-json\/wp\/v2\/media?parent=18880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/curlec.com\/blog\/wp-json\/wp\/v2\/categories?post=18880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/curlec.com\/blog\/wp-json\/wp\/v2\/tags?post=18880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}