Stamp Duty in Malaysia: Latest Update as at 2025

Author:  Mohd Ashraf Ramli & Nadia Emira Sazahan

1. Malaysia, stamp duty applies to instruments rather than to the transactions themselves and it is a tax levied on certain written instruments. 'Instrument' includes every written document, including Sale and Purchase Agreements, Service Agreements, Loan Agreements, Lease & Tenancy Agreements and any other instruments relating legal, commercial and financial instruments. In a transaction, there must be an instrument of transfer for stamp duty to arise. Therefore, if there is no instrument involved in a transfer, there will be no stamp duty payable for such transaction. 2. The stamp duty rate is determined based on the type of instruments and the consideration specified in those instruments or the market value of the assets / property / project. The payment of stamp duty can be divided into two (2) categories as follows:-   (a) Ad Valorem Stamp Duty – means the stamp duty payable pursuant the value / amount of the transaction, as set out in the First Scheduleof the Act, on any of the following instruments:-

  (i) instruments of transfer of property including marketable securities, shares of other companies and of non-tangible property;

(ii) instruments creating interests in property (tenancy / lease); and (iii) instruments of security for monies, including instruments creating contracts for payment of monies or obligation for payment of monies.

  (b) Fixed Stamp Duty – means the stamp duty imposed at nominal of RM10.00 only without taking into consideration of the transaction amount stated in the instrument. 3. Section 47 of the Stamp Act 1949 (“Act”) requires for the instruments to be stamped within thirty (30) days of its execution, if executed within Malaysia, or within thirty days (30) after it has been first received in Malaysia, if it has been executed out of Malaysia failing which penalties will be imposed as follows:- (a) RM50.00 or 10% of the amount of the stamp duty, whichever is higher, if stamped within 3 months; (b) RM100.00 or 20% of the amount of the stamp duty, whichever is higher, if stamped after 3 months. Exemptions from Stamp Duty 4. There several types of exemptions provided under the Act as follows:-

Conclusion

5. Understanding the various exemptions available for stamp duty in Malaysia can lead to significant savings and facilitate smoother transactions. It is recommended that you seek guidance from an expert in the field for personalized advice suited to your circumstances, ensuring you maximize the exemptions available to you. If you have any further questions or require assistance with your transactions, please do not hesitate to reach out.

Disclaimer:

This newsletter is for informational purposes only and does not constitute legal advice. Please consult with a qualified legal specialist for advice tailored to your specific situation.