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Stamp
duties are amount paid to the government on a variety of written
documents and instruments that are listed in Schedule 1 of the Stamp Act
1949 with a view to make the documents enforceable in court of law. An
unstamped or insufficiently stamped instrument is not admissible as
evidence in a court of law, nor will it be acted upon by a public
officer.
As a
general rule, stamp duty is chargeable on documents of legal, commercial
or financial nature.
The stamp
duty chargeable on the Memorandum of Transfer (MOT) is calculated based
on the purchase price as follow:-
For the first RM100,000, the stamp duty payable is 1.00%
For the next RM400,000, the stamp duty payable is 2.00%
For any sum exceeding RM500,000, the stamp duty payable is 3.00%
Example:
If the
property price is RM550,000.00, the calculation as below:
First
RM100,000 @ 1.00 % = RM1000.00
Next
RM400,000 @ 2.00% = RM8000.00
Next
RM50,000 @ 3.00% = RM1500.00
Total
stamp duty payable is : RM10,500
In
addition, the MOT must be stamped within 30 days of its execution,
otherwise , a penalty will be imposed.
Loan
Agreement Stamp Duty Rates:
Every RM1000 = RM5.00 (Approximately 0.5%)
Fixed
Duty
This is a duty that is imposed at a fixed rate without any connection to
the consideration or the amount specified in the instrument. Example of
documents involved in a property transaction which are stamped with a
fixed rate are as follows:-
a) Sale and Purchase Agreement (RM10.00);
b) Statutory Declarations (RM10.00);
c) Other financing documents which are subsidiary to the principal loan
instrument (e.g charge, power of attorney etc) (RM10.00);
The counterpart or duplicate of any instrument is chargeable with duty
(RM10.00) – provided it must be shown that the proper duty of the
original instrument has been paid.
Stamp Duty Exemption /
Remission
Remission of Stamp Duty
Remission of stamp duty means a deduction of a certain percentage off
the payable stamp duty. They are provided for in a number of situations
as below (non-exhaustive list):
Financing Instruments
- 1.20% off the stamp duty payable for principal financing instrument
under the principles of Syariah law;
- 2.50% off the stamp duty chargeable on principal financing instrument
relating to purchase of the purchaser’s first residential property not
exceeding RM400,000 by a Malaysian citizen.
Property Instruments
- 1.50% off the stamp duty chargeable on any instrument of transfer of
any property operating as a voluntary disposition (not sale and
purchase) between parent and child;
- 2.50% of stamp duty chargeable on any instrument of transfer for
purchase of a first residential property not exceeding RM400,000 by a
Malaysian citizen.
Exemption of Stamp Duty
Exemption of stamp duty means a full exemption from payment of the
payable stamp duty. They are provided for in a number of situations as
below (non-exhaustive list):
Financing Instruments
1.Financing documents for the purchase of residential properties under
Skim Perumahan Rakyat 1Malaysia (PR1MA) priced up to RM300,000 for sale
and purchase agreements executed from 1 January 2012 until 31 December
2016.
Property Instruments
1.Instrument of transfer in relation to any transfer of property between
associated companies subject to certain requirements;
2.Instrument of transfer in relation to any transfer of property
operating as a voluntary disposition (not sale) between spouses.
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