When it comes to buying property in Malaysia, one of the key aspects that buyers should be aware of is the agreement stamp duty. This is a type of tax that is imposed on various types of agreements, including those related to property transactions. In this article, we`ll take a closer look at agreement stamp duty in Malaysia and what you need to know as a buyer.
What is agreement stamp duty?
Agreement stamp duty is a tax that is imposed on instruments or documents that relate to certain types of transactions or agreements. These can include sale and purchase agreements, tenancy agreements, and loan agreements, among others. The stamp duty is typically calculated as a percentage of the value of the transaction or the property involved.
In Malaysia, the Stamp Act 1949 governs the imposition of stamp duty on various agreements and documents. The rate of duty varies depending on the type of transaction and the value of the property or goods involved.
What is the agreement stamp duty for property transactions in Malaysia?
For property transactions in Malaysia, the stamp duty payable on the sale and purchase agreement is calculated based on the purchase price of the property. The current rates are as follows:
– For properties valued at RM100,000 or less, the stamp duty is 1% of the purchase price.
– For properties valued between RM100,001 to RM500,000, the stamp duty is RM1,000 plus 2% of the amount above RM100,000.
– For properties valued between RM500,001 to RM1,000,000, the stamp duty is RM10,000 plus 3% of the amount above RM500,000.
– For properties valued above RM1,000,000, the stamp duty is RM30,000 plus 4% of the amount above RM1,000,000.
It`s important to note that these rates may be subject to change, so it`s always a good idea to check with the relevant authorities or seek advice from a qualified professional.
How is agreement stamp duty paid?
As a buyer, you are typically responsible for paying the agreement stamp duty on the sale and purchase agreement. This is usually done by purchasing adhesive stamps from a licensed stamp vendor or through the e-stamping system provided by the Inland Revenue Board of Malaysia.
Once you have purchased the required stamps, they should be affixed to the agreement and cancelled to indicate that the stamp duty has been paid. The stamped agreement should then be submitted to the relevant authorities for registration.
Why is agreement stamp duty important?
Agreement stamp duty is an important aspect of property transactions in Malaysia, as failure to pay the required stamp duty can result in penalties and legal complications. By ensuring that the duty is paid on time and in full, you can help to protect your interests as a buyer and avoid any unnecessary delays or legal issues.
In conclusion, agreement stamp duty is an important consideration for anyone buying property in Malaysia. By understanding the rates and requirements associated with this type of tax, you can ensure that your property transaction proceeds smoothly and without any unnecessary hiccups.