Stamp duty payable
A purchaser of a property has to stamp duty to the government when he buys a property.
How to calculate the stamp duty payable?
The stamp duty chargeable on the Sale and Purchase Agreement is RM10 each.
The stamp duty chargeable on the Memorandum of Transfer is calculated based on the purchase price as follow:-
- For the first RM 100,000, the stamp duty payable is 1 %
- For the next RM 400,000, the stamp duty payable is 2%
- For any sum exceeding RM 500,000, the stamp duty payable is 3%
For instance, if your purchase price is RM 800,000. The calculation is as follows-
Total stamp duty payable: ( RM 100,000 x 1%) + (RM400,000 + 2%) + (300,000 x 3%)
Penalty on document not stamped within time
If a document is not stamped within the timeframe, the purchaser will have to pay, in addition to the stamp duty payable, a penalty and the rates of the
penalty are as follows:-
(i) RM25 or 5% of the duty, whichever shall be greater, if the same is stamped within three months after the time of stamping;
(ii) RM50 or 10% of the duty, whichever shall be greater, if the same is stamped later than three months but not later than six months after the time of
(iii) RM100 or 20% of the duty, whichever shall be greater, if the same is stamped later than six months after the time of stamping.
The purchaser may appeal to the Collector of Stamp Duties for reduction of penalty
Consequences of a document not duly stamped
A document which is not stamped or insufficiently stamped is not void or unenforceable for that reason alone. However, such document may be rejected as evidence if it is required to be produced before the Court. In that event, the party who wishes to produce the unstamped or insufficiently stamped document will have to pay the stamp duty payable and penalty before such document can be received as evidence.
For further information
Please obtain legal advice or Consult Our Panel Lawyers.
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