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.
The Assessment and Collection of Stamp Duties is sanctioned by statutory law now described as the Stamp Act 1949.
There are two types of duty, Ad Valorem Duty and Fixed Duty. Ad Valorem Duty is the rate of duty varies according to the nature of the instruments and the consideration stipulated in the instruments or the market value of the property. Fixed Duty Duty is imposed without any relation to the consideration paid or amount stated in the instrument.
The role of the department is to value when a property is transferred, a transferee is required to pay a stamp duty.
BASIS OF TAX
As provided for under the First Schedule of the Stamp Act 1949, this duty is based on the money value of the consideration or the market value of the property, whichever is greater.
RATE OF TAX
The tax rate charged is subject to the First Schedule of the Stamp Act 1949.
DATE OF VALUATION
Where there is a Sale and Purchase Agreement the date of valuation is the date of execution of the agreement, otherwise it is the date of execution of the instrument of transfer.
JPPH’ S MALAYSIA ROLE
The Stamp Duty Office (SDO) of the Inland Revenue Board (IRB) refers the prescribed form to JPPH Malaysia where the market value of the property is ascertained and reported within one (1) working day for standard SDO then informs the transferee/ lawyer of the duty payable. The IRB will impose Stamp Duties based on the valuation reported by JPPH Malaysia.
Documents to be submitted to SDO/ JPPH Malaysia:
- A complete of form PDF 15.
- Copy of the Sale and Purchase Agreement (where relevant).
- Copy of the Document of Title. The parties concerned are advised to make the necessary for inspection purposes.
All Stamp Duty valuations shall be reported within one (1) working for standard case and five (5) working days for non-standard cases from date of receipt by the office.
ONLINE ENQUIRY SERVICE
The online enquiry service enables users to check status of the case via http://www.jpph.gov.my and/ or sms type JPPH< space>DUTISETEM<space> Adjudication No.<space>email and send to 15888.
OBJECTIONS ON VALUATIONS
Any objection on the valuation of the property must be directed to the SDO and a copy sent to JPPH Malaysia.
Any further appeal should be by way of a case referred by the SDO to the High Court.