Stamp duty
Stamp duty is one of the methods by which the government earns revenue. The assessment and collection of stamp duties is governed by the Stamp Act 1949 (Malaysia) . Stamp duty is levied by the government on instruments or documents of transfer. In property transactions, the imposition of the said duty is in the form of ad valorem (i.e. according to the value of the property).
All transfers of property attract stamp duty regardless of whether the acquirer gives consideration (value in money or kind example by exchange, as gifts from loves one) for the transfer or not. The duty is payable on the value of the property.
The Malaysian government will at times impose a stamp duty exemption for certain property types for a certain period of time so as to encourage housing sales.
Stamp duty on sale and purchase agreements is calculated as a percentage of the purchase price. Solicitors are not allowed to collect stamp duty and other disbursements for a transfer until a separate document of title has been issued.
Stamp duty for the transfer of property is chargeable at the following rate:
This preview is an excerpt from the following publication. this publication for access to all the commentary and precedents.
Purchase of Real Property - Step by Step Guide & Precedents
by By Lawyers For Lawyers author - Jayadeep Hari & Jamil
Overview
This Purchase Step-by-Step Legal Practice Guide and Precedents contains extensive precedents and guidance to enable a lawyer to complete a purchase of property matter including guidance on:
- Sale and purchase agreement with title
- Sale and purchase agreement without title
- Purchase by foreigner
- Caveats
- Real Property Gains Tax
- Strata Titles Act 1985
A wide range of precedent forms and letters used through the course of the transaction are also included. As with all Step-by-Step Guides this guide takes you sequentially through a Purchase matter from getting the matter underway and taking instructions, right through to finalisation.