Stamp duty

Basis of taxation

Stamp duty is chargeable on instruments and not on transactions. An unstamped or insufficiently stamped instrument is not admissible as evidence in a court of law, nor will it be acted upon by a public officer.

Assessment and payment of stamp duty can be made electronically via the Stamp Assessment and Payment System. The stamp duty self-assessment system is to be implemented in phases based on the types of instruments or agreements as follows:

	Effective from	Types of instruments / agreement
Phase 1	1 January 2026	Rental or lease, general stamping and securities
Phase 2	1 January 2027	Instruments of transfer of property ownership (not involving valuation from Valuation and Property Services Department)
Phase 3	1 January 2028	Other than those stated in Phases 1 and 2

Rates of duty

The rates of duty vary according to the nature of the instruments and transacted values. A minimum duty of RM10 is imposed on dutiable instruments with duty of less than RM10, except cheques and contract notes. The stamp duty rates for some common instruments are as follows:

a) Properties (other than shares, stock or marketable securities)

Other than foreign companies, non-citizens and non-permanent residents:
Value threshold (RM)		Rate	Duty payable (RM)
On the first 100,000		RM1 per RM100 or part thereof	1,000
On the next 400,000		RM2 per RM100 or part thereof	8,000
On the next 500,000		RM3 per RM100 or part thereof	15,000
In excess of the first 1,000,000		RM4 per RM100 or part thereof
Foreign companies, non-citizens and non-permanent residents:
Scope	Rate
Properties (other than residential property, shares, stock or marketable securities)	RM4 per RM100 or part thereof (w.e.f. 1 January 2024)
Residential property	RM8 per RM100 or part thereof (w.e.f 1 January 2026)

b) Shares, stocks or marketable securities

Non-listed shares, stock or marketable securities
Value base	Rate	Valuation method
Consideration or value, whichever is greater	RM3 for every RM1,000 or any fraction thereof	Net tangible assets, or Sale consideration
Shares or stock listed on Bursa Malaysia
Value base	Rate
Transaction value	RM1.50 for every RM1,000 or any fraction thereof
Note: Stamp duty in excess of 0.1% is remitted for instruments of contract notes executed on or before 13 July 2023 until 12 July 2028, with maximum stamp duty payable of RM1,000 per contract note.
Listed marketable securities
Value base	Rate
Transaction value	RM1 for every RM1,000 or any fraction thereof, with maximum stamp duty payable of RM200 per contract note

c) Service agreements and loans agreements

Service agreement
Value base		Rate
Value of the services		0.5% on the value
However, stamp duty may be remitted in excess of 0.1% for the following instruments:
All service agreement (one tier)			Ad valorem rate of 0.1%
Multi-tier service agreement:
Non-government contract (i.e. between private entity and service providers)	First level		Ad valorem rate of 0.1%
	Subsequent level(s)		Up to RM50
Government contract (i.e. between Federal / State Government or State / local authority and service providers)	First level		Exempted
	Second level		Ad valorem rate of 0.1%
	Subsequent level(s)		Up to RM50
Loan agreement / loan instrument
Type of loan instrument				Rate on value of loan
Malaysian Ringgit or foreign currency loan agreements				0.5% or 1%
Loan agreements or instruments without security and repayable on demand or in single bullet repayment				0.1%
Loan or financing agreement for the purchase of goods (within the meaning under the First Schedule of the Hire Purchase Act 1967), executed from 1 January 2025: - through conventional hire purchase - through Islamic hire purchase - loan / financing (other than hire purchase) based on Shariah principles				RM10 flat rate

Stamping

Instruments executed in Malaysia which are chargeable with duty must be stamped within 30 days from the date of execution. When the instruments are executed outside Malaysia, they must be stamped within 30 days after they have first been received in Malaysia.

Penalty

The penalty imposed for late stamping varies based on the period of delay. The maximum penalty is RM100 or 20% of the deficient duty, whichever is higher.

Relief / Exemption / Remission from stamp duty

Examples of the exemptions, remissions or reliefs of stamp duty available are as follows:

Relief for business restructuring

Relief under		Qualifying transaction (conditions apply)
Section 15	Transfer of the undertakings or shares under a scheme of reconstruction or amalgamation of companies.
Section 15A	Transfer of property (excludes transfer of business) or shares between associated companies, where either company owns 90% or more of the other company, or where a third company owns 90% or more of both associated companies.

Exemption / remissions of stamp duty

1. Financing instrument

	Instrument and transaction
Exemption	Loan / financing agreements executed from 1 January 2022 to 31 December 2026 between MSMEs and investors for funds raised on a peer-to-peer (P2P) platform registered and recognised by the Securities Commission (SC) Budget 2027 proposes a remission for stamp duty exceeding RM10 on P2P loan or financing agreements executed from 1 January 2027 to 31 December 2030.
	All instruments of an Asset Sale Agreement and Asset Lease Agreement executed between a customer and a financier made under Syariah law principles for renewing any Islamic overdraft / revolving financing facility, provided the instrument for existing facility is duly stamped
	All instruments for purchase of property by any financier for the purpose of leaseback under the principles of Syariah or any instrument by which the financier shall assume the contractual obligations of a customer under a principal sale and purchase agreement
	Proposed exemption on loan / financing instruments executed from 1 January 2025 to 31 December 2026 by MSMEs and investors through Initial Exchange Offering platforms registered with SC
	Loan / financing instruments in relation to a Micro Financing Scheme for an amount up to RM100,000 (approved by the National Small and Medium Enterprise Development Council) between a MSMEs and a participating bank or financial institution
	Budget 2027 proposes the stamp duty on foreign currency loan or financing agreements from banks in Malaysia, executed from 1 January 2027, to be capped at RM2,000 for loan or financing up to RM100 million, and at RM5,000 where it exceeds RM100 million.
Remission	Any instruments of an Asset Lease Agreement executed between a customer and a financier made under the Syariah principles for rescheduling or restructuring any existing Islamic financing facility are remitted to the extent of the duty that would be payable on the balance of the principal amount of the existing duly stamped Islamic financing facility
	Stamp duty exceeding RM10 is remitted for principal loan or financing agreements for financing facilities provided to MSME and small contractors that have secured Government contracts: CAKNA I – executed from 1 March 2021 until 31 December 2028 (Budget 2027 proposes an extension to 31 December 2030) CAKNA II – executed from 1 January 2024 until 31 December 2025 (Budget 2027 proposes a reintroduction of this remission w.e.f. 1 January 2027 until 31 December 2030)
	Budget 2027 proposed stamp duty exceeding RM10 is to be remitted for second tier agreements, executed from 1 January 2027 to 31 December 2030, between Mid-Tier Companies and financial institutions for excess credit facilities given to MSMEs (subject to conditions).

2. Instrument of transfer

	Transaction
Exemption	Transfer of immovable property operating as voluntary disposition between husband and wife
	Transfer of land, business, asset and share in relation to the conversion of a conventional partnership or a private company to be a limited liability partnership
	Instrument of transfer and loan agreement for the purchase of first residential home of which the value is not more than RM500,000 by Malaysian citizens (sale and purchase agreement (SPA) executed from 1 January 2021 to 31 December 2027). Budget 2027 proposes a revision of stamp duty exemption on the instruments of transfer and loan agreements as follows: Homes priced up to RM500,000 – full exemption Homes priced up to RM750,000 – full exemption on the first RM500,000, and 50% stamp duty exemption on the price exceeding RM500,000 up to RM750,000. The exemption is for SPA executed from 1 January 2027 to 31 December 2030.
	Budget 2027 proposes the reintroduction of full stamp duty exemption on loan agreements and instruments of transfer executed from 1 January 2027 until 31 December 2030, between rescue contractors or developers and original buyers in relation to the revival of abandoned housing projects certified by the Ministry of Housing and Local Government.
Exemption and remission	Transfer of property (executed from 1 April 2023) by way of love and affection between parents and children, grandparents and grandchildren, limited to the first RM1 million of the property’s value, provided the recipients are Malaysian citizens. The balance of the property’s value is given 50% remission on the ad valorem stamp duty imposed
Remission	50% of stamp duty chargeable is remitted for transfer of immovable property operating as voluntary disposition between parent(s) and child and vice versa, executed before 1 April 2023 and provided that the recipient(s) is a Malaysian citizen
Fixed duty of RM10	Transfer of any property by way of release or renunciation by a beneficiary of a deceased estate to another beneficiary entitled under the same estate

3. Capital markets

	Instrument and transaction
Exemption	Specified instruments for the purpose of a securitisation transaction
	All instruments for the issue of, offer for subscription or purchase of, or invitation to subscribe for or purchase debentures or Islamic securities approved by the SC and the transfer of such debentures or Islamic securities
	Contract notes for sale and purchase transaction of structured warrant or exchange-traded fund approved by the SC, executed by 31 December 2028.
	Exemption on contract notes for buy-side structured warrant transaction executed from 1 January 2026 to 31 December 2028
Remission	Duty in excess of RM200 is remitted for contract notes for the sale of shares, stocks or marketable securities in companies incorporated in Malaysia or elsewhere between a local broker and an authorised nominee on behalf of a foreign broker

4. Employment related instrument

	Instrument and transaction
Exemption	Employment contracts involving monthly wages not exceeding RM3,000 per month.

5. Insurance markets

	Instrument and transaction
Exemption	Insurance policies or takaful certificates with low annual premium / contribution (not exceeding RM150 for individuals, and RM250 for MSMEs) issued from 1 January 2022 to 31 December 2028.

6. Others

Budget 2027 proposes a fixed stamp duty rate on loans to purchase or build Malaysian ships at RM2,000 for loans up to RM100 million, and RM5,000 for loans above RM100 million.

Budget 2027 proposes that w.e.f. 1 January 2027, instruments executed by individuals or businesses for the opening of savings and current accounts that contain an undertaking which creates a specific legal obligation, indemnity, guarantee or liability, will be exempted from the RM10 stamp duty.