The imposition and payment of stamp duty can be made electronically through the Stamp Assessment and Payment System (STAMPS) of the tax office. b) Government contract (i.e. between the Federal/National Government of Malaysia or the public/local authority and service providers) In Malaysia, stamp duty is a tax levied on a large number of written instruments defined in the First Schedule of Stamp Duty Act 1949. In general, stamp duty is applied to legal, commercial and financial instruments. Exemption from stamp duty for all instruments of an asset Sale Agreement & Asset Lease Agreement concluded between the client and the financier and concluded in accordance with the principles of the Syariah Act to extend an Islamic revolving financing facility, provided that the instrument of the existing facility is properly stamped. (a) Non-governmental treaty (i.e. between private bodies and service providers) Payment of stamp duty may be made using the following method. An instrument that is not stamped or insufficiently stamped is not admissible as evidence in court and is not paid for by a staff member. Stamp duty on foreign currency loan agreements is usually limited to RM2,000. Exemption from stamp duty on the deed of transfer and loan agreement for the purchase of a dwelling worth RM300.001 to RM2,500,000 by Malaysian citizens under the Home Ownership Campaign 2020/2021: The penalty for late sealing varies depending on the period of delay. The maximum penalty is RM100 or 20% of the default tax, whichever is greater. Stamp duty of 0.5% on the value of services/loans.
However, stamp duty may be higher than 0.1% for the following instruments: total exemption from stamp duty on the deed of transfer in respect of the purchase of the first residential property with a value not exceeding RM500,000 by a Malaysian citizen under the National Housing Department`s Own-to-Own (RTO) scheme. The exemption is granted in two stages, i.e. from the real estate developer (PD) to a qualified financial institution (FI) and from the FI to the Malaysian citizen. The exemption is subject to the execution of the following agreements between 1 January 2020 and 31 December 2022, i.e. the sales contract between fi and FI and the RTO agreement between FI and the Malaysian citizen. Instruments exported to Malaysia that are taxable must be stamped within thirty days from the date of execution. . . .