Stamp Duty in Malaysia – Complete Guide (MOT & Loan Agreement)

When you purchase property in Malaysia, two types of stamp duty are payable to LHDN: Memorandum of Transfer (MOT) stamp duty on the transfer of ownership, and Loan Agreement stamp duty on the loan documents. Both are governed by the Stamp Act 1949.

Stamp duty is typically the largest upfront costoutside the downpayment and legal fees. Understanding exactly how it's calculated will help you budget accurately for your property purchase.

Worked Example: RM650,000 Property

Part 2: Loan Agreement Stamp Duty

A flat rate of 0.5% is charged on the loan amount (not the property price). This applies to the total housing loan amount taken from the bank.

Example: If your loan is RM585,000 → Loan stamp duty = RM2,925.

First-Time Buyer Exemptions

Malaysian citizens purchasing their first residential propertymay qualify for full MOT stamp duty exemption under LHDN's Home Ownership Campaign (HOC) or government budget incentives:

• Properties priced up to RM500,000: Full MOT exemption is available for first-time buyers under applicable government campaigns. Confirm eligibility with LHDN as this is subject to periodic budget announcements.
• Loan agreement stamp duty: May also be fully or partially exempt for first-time buyers on qualifying properties.
• Submit PDS 1 (Property Declaration Form) and required documents to claim the exemption at time of stamping.

When Must Stamp Duty Be Paid?

• Stamp duty must be paid within 30 days of the SPA signing date (within Malaysia) or 30 days of the instrument being brought into Malaysia if signed overseas.
• Late payment incurs a penalty of 5% per annum on the outstanding duty.
• e-Stamping can be done via LHDN's Stamp Assessment and Payment System (STAMPS) portal at stamps.hasil.gov.my.