Stamp duties are imposed on instruments and not transactions. An instrument is defined as any written document and in general,- stamp duty is levied on legal, commercial and financial instruments. The person liable to pay stamp duty is set out in the Third Schedule of Stamp Act 1949.

• Instruments of transfer (implementing a sale or gift) of property including marketable securities (meaning loan stocks and shares of public companies listed on the Bursa Malaysia Berhad), shares of other companies and of non-tangible property (e.g. book debts, benefits to legal rights and goodwill).
  
  
• Instruments creating interests in property (e.g. Tenancies and Statutory Leases)
  
  
• Instruments of security for monies, including instruments creating contracts for payment of monies or obligation for payment of monies (generally described as `Bond`)
  
  
• Certain capital market instruments (e.g. Contract Notes)

• A number of other legal, commercial, mercantile or capital market instruments (e.g. Power or Letter of Attorney, Articles of Association of a Company, Promissory Notes, Policy of Insurance etc); and
  
  
• A duplicate or a subsidiary or a collateral instrument when it can be shown that the original or principal or primary instrument has been duly stamped.

1. General exemptions under Section 35 in First Schedule, Stamp Act 1949 and Specific exemptions under item 2, 4 and 32 in First Schedule, Stamp Act 1949 
   
   
2. Relief may be given pursuant to Section 15 and Section 15A, Stamp Act 1949:

• Section 15 : Relief from Stamp duty in case of reconstructions or amalgamations of companies.
  
  
• Section 15A : Relief from Stamp Duty in case of transfer of property between associated companies.

Application for relief can be done online through STAMPS

The purpose of adjudication is to ensure that the instrument is duly stamped 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.

• With effect from 1st January 2009, the RM10 fee payable for adjudication of an instrument will no longer be imposed.
  
  
• All instruments chargeable with duty and executed by any person in Malaysia shall be brought to the Collector who shall assess the duty chargeable. For this purpose, the Collector may require the instrument to be fully furnished with all other necessary or supporting documents of evidence. The Collector may refuse to proceed upon any such application until all documents have been furnished to him accordingly.
  
  
• All application for adjudication can be submitted at any LHDNM counter in Stamp Branch Offices, Revenue Service Centres and District Offices or online through STAMPS website at https://stamps.hasil.gov.my

MODE OF STAMPING

The payment of duty on an instrument may be denoted by:

• Impressed Stamps through the use of Digital Franking Machine
  
  
• STAMP Certificate Stamp certificate (in relation to the instrument to the value of the duty paid) is issued electronically where stamping application is done online via the internet at LHDNM website (https://stamps.hasil.gov.my). The certificate should be affixed or attached to the instrument and the instrument shall be deemed to be duly stamped
  
  
• Revenue Stamps (Setem Hasil) can be purchased at all Post Offices in Malaysia. Revenue stamps are available in the following denominations:

- RM 1.00 

- RM 5.00 

- RM10.00 

- RM50.00 

- RM100.00 

- RM250.00

Cancellation of the revenue stamps can be done at Stamp Branch Offices, Revenue Service Centres and District Offices. Under Schedule 2 of the Stamp Act 1949, specific persons are conferred the power to cancel revenue stamps.

Power to Compound Duty. The compounding payment of duty as stipulated by Section 9 Stamp Act 1949, is restricted to the following types of instruments:

- cheques 

- policies of insurance 

- contract notes 

- Memorandum of Association & Article of Association. 

- TNB Electric Supply form

• Kew. 38 Receipt Payment of duty for stamping through the issuance of Kew. 38 Receipt

• 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:

• 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.

• Comply with procedures stipulated by LHDNM Stamp Duty Branch Offices and Revenue Service Centres

• Contact Deputy Collector of stamp duty if in doubt with regards to technical issues and work procedures.

• Lawyers or authorised officers may represent the company pertaining to technical issues and work procedures on stamp duty