Stamp duty

11 important questions on Stamp duty

What conditions must be fulfilled for S15A full exemption on stamp duty?(90%GAI)

  • Transfer of property occurs between associated companies.(90% SHH)
  • Transfer achieves greater efficiency in operation.
  • Transferee company is incorporated in Malaysia.

What is the duty charged on, according to the stamp duty notes?

A duty is charged on instruments (written documents)

What happens if the property was previously transferred by a non-associated person?

S15A is withdrawn if the property was previously transferred by a non-associated person.
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How does a change in share capital affect S15A?

S15A is withdrawn if the transferor or transferee ceases to be associated due to a change in the percentage of issued share capital within 3 years from the date of transfer.

When is S15A withdrawn due to consideration?

S15A is withdrawn if the consideration is wholly or partly provided or received by a non-associated company.

On what basis is the above duty imposed for property transactions?

The duty is imposed on the value of consideration or market value, whichever is higher.

What condition involving property disposal leads to S15A withdrawal?

S15A is withdrawn if the transferee company disposes of the property acquired within 3 years from the date of the transfer.

Within how many days must an instrument be stamped from the date of execution?

An instrument must be stamped within 30 days from the date of execution.

What are the penalties for late stamping of instruments?

  • If within 3 months: Higher of RM50 or 10% x unpaid tax
  • If >3 months: Higher of RM100 or 20% x unpaid tax

What is the stamp duty exemption for property transfer between parents and children?

  • First RM1 million of the property value – 100% exemption
  • Any amount in excess of RM1 million – 50% remission

What condition must be met for stamp duty exemptions for individuals?

Recipients must be Malaysian citizens to qualify for stamp duty exemptions.

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