Stamp duty is imposed on the ‘instrument of transfer’ (or documents) related to the purchase or transfer of the property, which is paid for by the buyer. Any written document is considered an instrument, and stamp duty is often levied on financial, commercial, and legal instruments. These include the Sales and Purchase Agreement (S&P) and Memorandum of Transfer (MOT), and even loan documents. (LHDN, n.d.) Same as RPGT, stamp duty is also a tax imposed by the Inland Revenue Board.

There are two types of stamp duty which are:

1. Ad Valorem Duty
The imposition of stamp duty is based on the value of consideration; or the market value of the property, whichever is higher. Moreover, the imposition of ad valorem duty is on:
– Marketable securities, such as loan stocks and shares of publicly traded firms listed on the Bursa Malaysia Berhad; shares of other instruments; and intangible property (e.g. book debts, benefits to legal rights and goodwill).
– Instruments for establishing property interests (e.g. Tenancies and Statutory Leases)
– Money-related security instruments, such as those that establish instruments or contracts for the payment of money (sometimes referred to as “Bonds”)
– Particular financial market instruments (e.g. Contract Notes)
Property price Percentage

2. Fixed Duty
Duty is fixed at a sum which does not vary with the value of transaction specified in the instrument. It is imposed independently of the value of the consideration received or the amount specified in the instrument:
– Power or Letter of Attorney, Articles of Association of a Company, Promissory Notes, Policy of Insurance etc : RM10
– Articles of Association : RM100