All transactions such as sale, transfer, mortgage and loan are subjected to legal stamps.

Stamp duty is a tax on legal documents, not a transaction.

All transactions such as sale, transfer, mortgage and loan are subjected to legal stamps. In contrast, if the transactions do not involve any legal documents, then there is no need to pay for any stamp duty.

The types and charges of stamp duties are stated in the Stamp Duty Act 1949. The stamp duty is actually very complicated and involves many different situations.

Stamp duty is basically divided into two categories:

• Fixed Duties – Fixed charges are RM10 per unit, including stamps, policies, stamps for every copy.
• Ad Valorem Duties – Stamp duty based on the value of the transaction on the legal documents, including the Memorandum of Transfer / Deed of Assignment, the equity of the listed company, lease, loan contract and legal documents.

Note **: The stamp duty is calculated based on the property price of the contract of sale or the higher price of the market value. The valuation report is issued by the government valuer to determine the market price. If the price of the sale and purchase agreement (S&P) is lower than the market price, the stamp duty is charged according to the market price. Meanwhile, if the contract is higher than the market price, the stamp duty is charged according to the price specified in the contract.

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