Business Undertaking
In the case of purchase of any BUSINESS UNDERTAKING, the contract of sale and purchase is chargeable to ad valorem duty on the price relating to goodwill, debt and other chose-in action. The rate of duty is the same as that of IMMOVABLE PROPERTY.
IMMOVABLE PROPERTY
The prescribed rate of duty is as shown below. The duty at this rate is also payable where the instrument of transfer constitutes a DEED OF ASSIGNMENT executed on sale or gift of the contractual interest on the property.
On the first RM100,000: RM1.00 for every RM100 or fractional part of RM100.
On any amount in excess of RM100,000 but not exceeding RM500,000: RM2.00 for every RM100 or fractional part of RM100.
On any amount in excess of RM500,000 : RM3.00 for every RM100 or fractional part of RM100.
STOCKS, SHARES OR MARKETABLE SECURITIES
The prescribed rate of duty is RM3.00 for every RM1,000 or fractional part of RM1,000 on the price or value thereof on the date of transfer, whichever is the greater.
On the first RM100,000: RM1.00 for every RM100 or fractional part of RM100.
On any amount in excess of RM100,000 but not exceeding RM500,000: RM2.00 for every RM100 or fractional part of RM100.
On any amount in excess of RM500,000 : RM3.00 for every RM100 or fractional part of RM100.
TENANT AND LANDLORD
The lease or tenancy instrument which secures annual rent not exceeding RM2,400 is EXEMPTED from duty and presentation of these instruments at a stamping office or centre is not necessary.
The prescribed rate of duty on the instrument which secures annual rent exceeding RM2,400 is as follows:
(For every RM 250 or part thereof in excess of RM2, 400) When the lease is for a period Duty Rate Not exceeding one year RM1.00
Exceeding one but not exceeding three years RM2.00
Exceeding three years or for any indefinite period RM4.00
(For every RM250 or part thereof in excess of RM2,400 If the consideration for tenancy constitutes or includes a PREMIUM, additional duty is chargeable and it is calculated on the amount of the premium at the rate chargeable on immovable property.
If the lease provides for differential rent, please contact The Deputy Collector of Stamp Duty for further information.
STAMPING OF DOCUMENTS AFTER EXECUTIONS
In general, any unstamped or insufficiently stamped instrument excluding cheque or promissory note drawn or made within Malaysia may be stamped after execution on payment of the unpaid duty, if the instrument is presented for stamping:
Within 30 days of its execution if executed within Malaysia or;
Within 30 days after it has been first received in Malaysia if it has been executed out of Malaysia
PURCHASE OF ADJUDICATION
An application to determine the amount of duty chargeable on any executed instrument can be made to the Collector. For this purpose the Collector may require that the instruments be furnished together with an affidavit or other evidence. The Collector may refuse such application until the required instrument and evidence have been furnished accordingly.
The purpose of adjudication is to protect the parties to the contract in respect of the admissibility of the instrument as evidence in court during a civil proceeding. An instrument which is not duly stamped is not admissible in court as evidence.
ADJUDICATION OF INSTRUMENTS
The fee payable for adjudication of an instrument is RM10 (with effect from 1st January 1996)
RESPONSIBILITY OF COMPANY SECRETARY / REGISTRAR
Section 52(1) of The Stamp Act 1949 PROHIBITS registration, acceptance or authentication of any instrument which has not been duly stamped.
If your duties include registration, acceptance or authentication of any instrument including share transfer and DEED OF ASSIGNMENT, contact the Deputy Collector of Stamp Duty if in doubt as to whether fixed duty or ad valorem duty is payable on the instrument .
Failure to comply with the provisions of this section is punishable under Section 69(2) with a fine not exceeding RM1,500.
Penalty
An instrument may be stamped within 30 days of its execution if executed within Malaysia or within 30 days after it has been first received in Malaysia if it has been executed outside Malaysia.
If it is not stamped within the period stipulated, a penalty of
RM25.00 or 5% of the deficient duty, whichever is the greater, if stamped within 3 months after the time for stamping;
RM50.00 or 10% of the deficient duty, whichever is the greater, if stamped after 3 months but not later than 6 months after the time for stamping;
RM100.00 or 20% of the deficient duty, whichever is the greater, if stamped after 6 months from the time for stamping;
may be imposed
(the above rates are effective from 1/1/2003)
METHOD OF PAYMENT
Payment may be made in the following manner:-
Revenue Stamp (if the duty does not exceed RM500) or
Money Order, Solicitor's Cheque or Bank Draft,made payable to the Deputy Collector of Stamp Duty and sent together with the relevant instrument to the stamp duty office by hand or through registered post.
Relief From Stamp Duty
Relief may be given pursuant to:
Section 15 Stamp Act 1949
Section 15A Stamp Act 1949
RECENT AMENDMENTS TO THE STAMP ACT 1949
(With effect from 1 January 2001)
All fixed duty documents (other than cheques, Articles of Association of a company, Memorandum of Association of a company) are subject to duty of RM10.00.
All documents constituting a Charge or Mortgage, Agreement for a Charge or Mortgage (including that under the Syariah), Bond, Covenant, Debenture etc. being the principal security for the payment or repayment of money are subject to duty of RM5.00 for every RM1,000.00 or part thereof.
All documents being the security for payment or repayment of money made for the purpose of pursuing higher education in higher educational institutions are subject to duty of RM10.00.
