Malaysia: Stamp Duty

The imposition of stamp duty in Malaysia is governed by the Stamp Act 1949. Stamp duty is levied on instruments i.e., any written document; it does not impose duty on transactions. In general, stamp duty is levied on legal, commercial, and financial instruments. There are two types of stamp duty:

1. Ad Valorem Duty

The rate of duty varies according to the nature of the instruments and the consideration stipulated in the instruments or the market value of the property. The imposition of ad valorem duty is on:

• Instruments of transfer of property, including marketable securities, shares of other companies, and non-tangible property
• Instruments creating interests in property
• Instruments of security for monies, including instruments creating contracts for payment of monies or obligations for payment of monies
• Certain capital market instruments

2. Fixed Duty

Duty is imposed without any relation to the consideration paid or amount stated in the instrument. The imposition of fixed duty is on:

• A number of other legal, commercial, mercantile, or capital market instruments
• A duplicate, a subsidiary, or a collateral instrument when it can be shown that the original, principal, or primary instrument has been duly stamped

The stamp duty rates for some common instruments are as follows:

1. Properties other than shares, stock, or marketable securities

• Other than foreign companies, non-citizens, and non-permanent residents – 1% to 4%
• Foreign companies, non-citizens, and non-permanent residents – 8%

2. Shares, stocks, or marketable securities

• Non-listed shares, stock, or marketable securities – 0.3%
• Shares or stock listed on Bursa Malaysia – 0.15%

Note: Stamp duty in excess of 0.1% is remitted for instruments of contract notes executed on or from 13 July 2023 to 12 July 2028, with a maximum stamp duty payable of RM1,000 per contract note

• Listed marketable securities – 0.1%

Note: Maximum stamp duty payable of RM200 per contract note

3. Service agreements – 0.5%

Stamp duty may be remitted in excess of 0.1% for the following instruments:

• All service agreement (one tier) – 0.1%
• Multi-tier service agreement (non-government contract) – First level 0.1% and subsequent level up to RM50
• Multi-tier service agreement (government contract) – First level exempted, second level 0.1%, and subsequent level up to RM50

4. Loans agreements

• 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 (within the meaning under the First Schedule of the Hire Purchase Act 1967) for the purchase of goods – RM10 flat rate

In line with the Government’s aspiration to modernize the tax system, the Self-Assessment Stamp Duty System (STSDS) will be implemented in phases based on the types of instruments or agreements:

Starting 1 January 2026, all stamp duty transactions in Malaysia will be conducted entirely online through the Stamp Assessment and Payment System (e-Duti Setem). Assessment and payment of stamp duty can be made electronically via the e-Duti Setem. Instruments executed in Malaysia must be stamped within 30 days from the date of execution. When instruments are executed outside Malaysia, they must be stamped within 30 days of first being received in Malaysia. A duty payer is given 30 days from the stamp duty filing due date to settle any stamp duty payment.

The Inland Revenue Board of Malaysia (IRBM) is empowered to conduct stamp duty audits under the Stamp Duty Audit Framework, effective from 1 January 2025. Stamp Duty Operational Guidelines dated 26 December 2025 was issued to address non-compliance due to incorrect stamp duty returns or incorrect information. Penalties and fines for such non-compliance are waived for instruments falling under Phase 1 and submitted for stamping from 1 January 2026 to 31 December 2026.

A few key amendments were introduced in the Finance Act 2025, including the following:

• New definition of “residential property” which means a house, condominium, apartment, flat, service apartment, or small office home office solely to be used as a dwelling house
• Stamp duty rate on the instrument of transfer of residential property executed by a foreign company, non-citizen individuals, and non-Malaysian permanent residents is increased from 4% to 8%, effective from 1 January 2026
• Stamp duty is exempted for employment contracts executed from 1 January 2026 with monthly wages not exceeding RM3,000; and, instruments of transfer and loan agreements executed up to 31 December 2027 for the purchase of a first residential property priced up to RM500,000 by Malaysian citizens

A special voluntary disclosure program (SVDP) will be introduced from 1 January 2026 to 30 June 2026 to encourage the submission of unstamped documents with minimal penalty. 

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Reference/Citation
Stamp Duty | The Inland Revenue Board of Malaysia – www.hasil.gov.my/en/stamp-duty/

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