What is Stamp Duty and How to Calculate?

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:-

1. For the first RM100,000, the stamp duty payable is 1%
2. For the next RM400,000, the stamp duty payable is 2%
3. For any sum exceeding RM500,000, the stamp duty payable if 3%

Penalty on document not stamped within time

If a document is not stamped within the timeframe, the purchaser will have to pay, in additional to the stamp duty payable, a penalty and the rates of the penalty are as follow:-

1. RM25 or 5% of the duty, whichever shall be greater, if the same is stamped within three months after the time of stamping.
2. 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 stamping;
3. 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 the reduction of penalty.

Consequences of a document not duty 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.

=> Please click here for Online Computation of Stamp Duty.