Malaysia Stamp Duty Rates — First Schedule Reference

Stamp duty is charged on instruments, not transactions. The same commercial deal can carry no duty, RM10 or six figures depending on what was signed and which First Schedule item it falls under. Getting the item right is the whole exercise — and under self-assessment it is now the taxpayer’s job rather than the Collector’s.

Ad valorem instruments

Item	Instrument	Duty
32(a)	Transfer or sale of property, other than stock, shares, marketable securities and certain book debts	On consideration or market value, whichever is greater: RM1 per RM100 on the first RM100,000; RM2 per RM100 above RM100,000 to RM500,000; RM3 per RM100 above RM500,000 to RM1,000,000; RM4 per RM100 above RM1,000,000
32(aa)	Transfer of non-residential property to a foreign company, or a person who is not a citizen and not a permanent resident	RM4 per RM100 flat, on consideration or market value, whichever is greater
32(ab)	Sale of residential property from 1 January 2026 to a foreign company, or a person who is not a citizen and not a permanent resident	RM8 per RM100 — 8% — on consideration or market value, whichever is greater
32(b)	Transfer of stock, shares or marketable securities	RM3 per RM1,000 or fractional part, on the price or value on the date of transfer, whichever is greater — 0.3%
32(c)	Absolute sale of accounts receivable or book debts to a licensed bank, merchant bank or finance company under a factoring agreement	RM10
27(a)(iii)	Charge or mortgage being the principal security for the repayment of money, general case	RM5 per RM1,000 or part — 0.5%
27(a)(i)	The same, where the loan or Syariah financing is to a small and medium enterprise	RM0.50 per RM1,000 on the first RM250,000 of aggregate loans in a calendar year; RM2.50 per RM1,000 for each additional amount up to RM1,000,000; RM5 for each additional RM1,000 thereafter
27(a)(ii)	Foreign currency loan, or Syariah financing in a currency other than ringgit	RM5 per RM1,000 or part
27(b)	Collateral, auxiliary, additional or substituted security where the principal security is duly stamped	One-fifth of the duty on the principal security, capped at RM10
27(c)	Equitable mortgage	One-half of the duty on a charge
22(1)(a)	Bond, covenant, loan, services or equipment lease agreement securing a sum for a definite period	The same ad valorem duty as a charge or mortgage for that total amount
49A	Lease or agreement for lease under Al-Ijarah principles for financing or securing repayment	The same ad valorem duty as a charge or mortgage for the total amount
71	Share warrant or stock certificate to bearer	RM1 for every RM100

Leases and tenancies — item 49

Item 49(a) applies where there is no fine or premium. The duty depends on the average annual rent and other consideration and on the term.

This subitem was wholly substituted by the Finance Act 2024 (Act 862) with effect from 1 January 2025. The current scale, charged for every RM250 or part thereof of the annual rent, is:

Term of lease	Duty per RM250 or part
Not exceeding one year	RM1.00
Exceeding one year but not exceeding three years	RM3.00
Exceeding three years but not exceeding five years	RM5.00
Exceeding five years, or for any indefinite period	RM7.00

Two changes here catch almost everyone:

• The RM2,400 nil band is gone. The substituted subitem contains no exemption threshold, so duty runs from the first ringgit of rent. Guidance still printing “no duty if annual rent is RM2,400 or less” is describing repealed law.
• The upper rates rose and a band was added. The old scale ran RM1 / RM2 / RM4 across three bands; the current one runs RM1 / RM3 / RM5 / RM7 across four.

Other limbs of item 49:

• 49(b) — in consideration of a fine or premium without rent: the same duty as a conveyance for that consideration.
• 49(c) — fine or premium and rent: conveyance duty on the fine or premium, plus lease duty on the rent.
• 49(d) — where a percentage or proportion of the produce of the land is reserved: RM10, in addition to any duty under (a), (b) or (c).
• 49(e) — granted in pursuance of a duly stamped agreement, on production of that agreement: RM10.
• 49(f) — any other case: RM10.

Exemption: an agricultural lease for a definite term not exceeding three years where the rent reserved does not exceed RM200 a year.

Fixed-duty instruments

Item	Instrument	Duty
4	Agreement or memorandum of agreement made under hand only, not otherwise specially charged	RM10
6	Appointment of a receiver under a mortgage	RM10
7	Appointment of a new trustee	RM10
22(3)	Grant or contract for a superannuation annuity	RM10
22(4)	Security for money for pursuing higher education or a course of study	RM10
23	Bond, charge, mortgage or other instrument (indemnity bond)	RM10
24	Bond on obtaining letters of administration	RM10
25	Bond of any kind not specifically charged	RM10
29	Cheque, unless compounded for	RM1.00 — raised from 15 sen by Act 862 from 1 January 2025
29A	Constitution of a company	RM200
34(a)	Counterpart or duplicate, where the original’s duty does not exceed RM10	The same duty as the original
34(b)	Counterpart or duplicate, in any other case	RM10
35	Separate deed of covenant not chargeable ad valorem	RM10
37	Declaration of any use or trust	RM10
38	Deed of any kind not otherwise described	RM10
50	Letter of guarantee	RM10
50A	Letter of hypothecation	RM10
51	Letter of allotment and letter of renunciation	RM10
59(a)	Power or letter of attorney being a conveyance of real property in consideration of, and creating by way of, sale or gift	The same duty as a conveyance on sale
59(b)	Power or letter of attorney, any other case	RM10
61	Protest of note	RM10
68	Revocation of any use or trust	RM10
78	Trust receipt	RM10

Exemptions built into item 4

Item 4 is the catch-all agreement item, and its own exemption list matters more than its RM10 rate. The instrument is not chargeable where it is an agreement or memorandum:

• for or relating to the sale of goods, wares or merchandise, other than a hire-purchase agreement;
• for service or personal employment where the wages do not exceed RM3,000 per month, and any agreement between the master and mariners of a vessel for wages — the threshold was raised from RM300 to RM3,000 by the Finance Act 2025 (Act 874) with effect from 1 January 2026;
• the matter whereof is of a value of less than RM300;
• for the reference of any matter to arbitration;
• for the payment of interest on money deposited in any bank;
• for the repurchase of a negotiable certificate of deposit whose issue was authorised by Bank Negara Malaysia.

That change matters far beyond item 4’s RM10 rate. Until the end of 2025 the RM300 threshold was low enough that effectively every employment contract was dutiable. From 1 January 2026, a contract paying RM3,000 a month or less is exempt, which takes a large share of the Malaysian workforce out of the charge entirely.

The minimum duty rule

Section 36CB, inserted by Act 862 with effect from 1 January 2025, provides that where the duty on an instrument would be less than RM10, a duty of RM10 is imposed instead — except for cheques and contract notes. Small ad valorem computations therefore round up to RM10 rather than producing a few ringgit.

Where to find exemptions and relief

Three separate mechanisms, and they are not interchangeable:

• General exemptions under s.35, listed in the First Schedule under the heading General Exemptions.
• Specific exemptions attached to individual items — notably items 2, 4, 23, 24, 32, 49 and 58.
• Ministerial exemption or remission under s.80, granted by the Minister of Finance and published as a P.U.(A) order. When claiming one, you must cite the gazette reference or produce the Ministry’s exemption letter.

Separately, relief under s.15 and s.15A covers company reconstruction and amalgamation, and transfers of property between associated companies. Applications go to the relevant State Director’s Office, not through the ordinary stamping channel.

Common mistakes

• Charging duty on the transaction. Duty attaches to each instrument, so a deal documented in three signed agreements can attract duty three times.
• Missing items 32(aa) and 32(ab). A foreign or non-citizen transferee pays a flat 4% on non-residential property, and 8% on residential property from 1 January 2026 — not the 1% starting band.
• Applying a cap to share transfers. Item 32(b) carries no monetary ceiling — it is 0.3% on the full price or value. The RM1,000 cap people remember belongs to contract notes under item 31.
• Forgetting the counterpart. Duplicates attract RM10 under item 34(b).
• Quoting the RM2,400 tenancy exemption. It was abolished on 1 January 2025.
• Quoting the old RM1 / RM2 / RM4 lease scale. It is now RM1 / RM3 / RM5 / RM7 across four bands.
• Overlooking the company constitution. Item 29A charges RM200.

What’s next

Identify the First Schedule item before computing anything — item selection is where self-assessment errors originate, and the rate follows mechanically once the item is settled. Then check whether a s.80 order or s.15 relief applies, because those are claimed rather than applied automatically.