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Stamp duty is a fee that is charged/imposed on instruments or documents of transfer. Instruments which are subject to stamp duty are those specified in the First Schedule of the Stamp Act 1949. Instruments related to a real estate transaction includes Sales and Purchase Agreement (SPA), Tenancy Agreement (TA), Memorandum of Transfer (MOT), Loan Agreement (LA) etc. In Malaysia, the imposition of stamp duty is governed by the Stamp Act 1949.

Any legal instrument that is not stamped is not permissible to be tendered as evidence in a court of law. In order to protect the interest of the parties to any agreement, it is essential to have the agreement stamped to ensure the document is legally binding.

In accordance to the Third Schedule (Section 33) of the Stamp Act,

The Stamp Act 1949 provides that:

1. Ad- Valorem Duty- The imposition of ad-valorem duty is according to value of instrument of transfer and instrument creating interest.
2. Fixed Duty – The imposition of fixed duty on legal, commercial, mercantile or capital market instruments and duplicate/subsidiary/collateral instruments.

1. Purchase of Property- levied on the document of transfer based on the money value of the consideration or market value of the property, whichever is greater.
2. Lease/Tenancy – lease or tenancy instrument which secures annual rent exceeding RM2,400 without fine or premium.

1. Sale & Purchase Agreement & Memorandum of Transfer
    

   PRICE TIER	STAMP DUTY (% OF PROPERTY PRICE)
   First RM100,000	1%
   RM100,001 – RM500,000	2%
   RM500,001 – RM1,000,000	3%
   More than RM1,000,000	4%

   Stamp Duty is based on the Budget 2019, latest revision 

   For instance, if you purchase a property that cost RM750,000, stamp duty payable will be as follows:

   First RM100,000 @1%            RM 1,000.00
   Next RM400,000 @2%           RM  8,000.00
   Last  RM250,000 @3%           RM  7,500.00
   _____________________________________________
   Total                                       RM16,500.00
   _____________________________________________

2. Tenancy Agreement
    

   DURATION OF TENANCY	AMOUNT
   1 year or less	RM1
   > 1 year to 3 years	RM2
   > 3 years	RM4

   
   Note: The first RM2,400 of annual rental is entitled for stamp duty exemption.
   
   Formula to compute ad-valorem stamp duty as follows:
   
   [(Rental rate x 12 months)- 2,400]       x    Amount based on duration of tenancy
                          250
    
3. Loan Agreement
   Stamp duty is charged at 0.5% of loan amount.