Stamp duty is the amount of tax levied on your property documents such as the Sales and Purchase Agreements (SPA), the Memorandum of Transfer (MOT) and the loan agreement. The assessment and collection of stamp duties is governed by the Stamp Act 1949.
There are two types of stamp duties which are ad valorem duty and fixed duty.
In Latin, the words ‘ad valorem’ means ‘according to value’. For ad valorem stamp duties, the costs differ depending on the nature of the instruments/documents, the terms and conditions stipulated within, as well as the market value of the property.
For fixed stamp duties, the cost is fixed at a set price, irrespective of the terms and conditions within the instruments/documents or the market value of the property.
A Sales and Purchase Agreement (SPA) is a binding legal contract between the buyer and the seller. It contains the terms and conditions agreed between the buyer and the seller, upon a sale or purchase of a property. The signing of the SPA has to be in the presence of a lawyer as it is a legal document.
A Memorandum of Transfer (MOT) is an important legal document that is used to transfer the ownership of the property from the developer or the seller to the buyer.
A Loan Agreement is a contract between the lender and borrower, which stipulates the terms and conditions of the loan. In the case of a property purchase, the loan agreement is signed between the financial institution providing the loan and the buyer or the borrower.
Both the stamp duty for the SPA and the MOT are calculated based on the purchase price (Refer below to 1.8 for the price tiers). The stamp duty of the loan agreement is 0.5% of the total loan.
If the documents are executed within Malaysia, the documents must be stamped within 30 dates from the date of execution.
If the documents are executed outside of Malaysia, the documents must be stamped within 30 days after they have been first received in Malaysia.
Yes, the rate of penalties are as below:
(i) If the document is stamped within three months past the deadline: RM 25 or 5% of the deficient duty, whichever is higher.
(ii) If the document is stamped after three months, but less than 6 months: RM 50 or 10% of the deficient duty, which is higher.
(iii) If the document is stamped after six months: RM 100 or 20% of the deficient duty, whichever is higher.
An appeal may be made to the Collector of Stamp Duties for a reduction in penalty and the Collector of Stamp Duties may consider the appeal if he deems it fit.
On 6 November 2020, the Malaysian Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced that for first-time home buyers, there will be exemptions on the stamp duty for the MOT and loan agreements. This is applicable for all residential property purchases up to RM 500,000 from 1 January 2021 to 31 December 2025. However, the SPA must be executed and signed within this stipulated period.
Based on the amount of stamp duty, you may opt for the following methods:
(i) If the amount does not exceed RM 100: Cash payment
(ii) If the amount does not exceed RM 500: Revenue stamp
(iii) Money order, solicitor’s cheque, bank draft that are payable to the Collector of the Stamp Duty. This is to be sent together with the documents to the stamp duty office by hand or registered post.
(iv) From 1 January 2009, payment via an electronic medium is available for those who have registered with the Collector.
For SPA and MOT:
Below are the latest stamp duty rates for SPA and MOT:
| wdt_ID | Price Tier | Percentage |
|---|---|---|
| 1 | First RM 100,000 | 1% |
| 2 | Next RM 400,000 (RM 100,001 to RM 500,000 | 2% |
| 3 | RM 500,001 to RM 1,000,000 | 3% |
| 4 | In excess of RM 1,000,000 | 4% |
For example, for a house priced at RM 800,000:
(First RM 100,000 x 1%) + (Next RM 400,000 x 2%) + (Remaining RM 300,000 x 3%)
= RM 1,000 + RM 8,000 + RM 9,000
= RM 18,000
For Loan Agreement:
There is a flat 0.5% free on the total of loan:
Assuming a 90% loan:
(90% x RM 800,000 = RM 720,000)
0.5% x Total loan amount of RM 720,000
= RM 3,600
For Legal Fees:
Below are the rates for the legal fees:
For Loan Agreement:
There is a flat 0.5% free on the total of loan:
Assuming a 90% loan:
(90% x RM 800,000 = RM 720,000)
0.5% x Total loan amount of RM 720,000
= RM 3,600
For Legal Fees:
Below are the rates for the legal fees:
| wdt_ID | Price Tier | Percentage |
|---|---|---|
| 1 | First RM 500,000 | 1%* |
| 2 | RM 501,000 to RM 1,000,000 | 0.8% |
| 3 | RM 1,000,001 to RM 3,000,000 | 0.7% |
| 4 | RM 3,000,0001 to RM 5,000,000 | 0.6% |
| 5 | In excess of RM 5,000,000 | 0.5% |
*Note: This is subject to a minimum fee of RM 500
For a property of RM 800,000:
(First RM 500,000 x 1%) + (Remaining RM 300,000 x 0.8%)
= RM 5,000 + RM 2,400
= RM 7,400
Note:
(i) An additional 6% for Sales and Services Tax (SST) on legal fees.
(ii) There will also be an additional estimated disbursement fee ranging from RM 1,000 to RM 1,500.
The information on this website is subject to change at any time without prior notice from Properly. Quantitative metrics are taken and used based on recency at the time of writing. While the Properly team takes information accuracy seriously, we are not liable for any losses due to incorrect information. The information provided is solely to inform users and is not in any way a form of offer or contract unless stated otherwise.
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