Stamp duty

Stamp duty is one of the methods by which the government earns revenue. The assessment and collection of stamp duties are 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 whether the acquirer gives consideration (value in money or kind example by exchange, as gifts from a loved one) for the transfer or not. The duty is payable on the value of the property.

The Malaysian government 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 transfer of property is chargeable at the following rate:

It should be noted that the vendor is not subjected to stamp duty when selling the property.

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