Stamp Duty in Malaysia: What It Is and Who Pays It

Stamp duty is one of those things everyone hears about, but very few people truly understand until a document is stuck, delayed, or unexpectedly penalised.

If you are buying a property, signing a tenancy agreement, taking a loan or even issuing certain contracts, stamp duty applies. In 2026, it matters even more because Malaysia has officially moved into a stamp duty self-assessment era.

Today, let the best accounting firm explain what stamp duty is, who needs to pay it and important changes made in 2026.

What Is Stamp Duty in Malaysia?

Stamp duty is a government tax charged on specific legal and commercial documents, not on transactions themselves.

In simple terms:

• You are not taxed for renting a house
• You are taxed for the tenancy agreement
• You are not taxed for borrowing money
• You are taxed for the loan agreement

Stamp duty helps make sure documents are legally recognised and compliant. 

An unstamped or insufficiently stamped document generally cannot be admitted as evidence in court until the correct duty (and any penalty) is paid, and it can also be flagged during audits.

Who Needs to Pay Stamp Duty?

Anyone who signs or relies on certain legal documents in Malaysia may need to pay stamp duty.

This includes:

• Individuals
• Business owners
• Companies
• Landlords and tenants
• Buyers and sellers
• Employers and employees (in some cases)

If a document creates legal rights, obligations, or ownership, stamp duty is likely involved.

Common Documents That Require Stamp Duty

Here is where most people get caught off guard.

If you have signed something and assumed “my lawyer handled it”, 2026 is the year you should double-check that assumption.

How Much Is Stamp Duty in Malaysia?

Stamp duty is calculated in two main ways:

1. Fixed duty, for simpler documents
2. Ad valorem duty, based on value or consideration

Example 1: Tenancy Agreement

• The first RM2,400 of annual rent is exempt from duty.
• Above that, stamp duty is charged based on every RM250 (or part thereof) of annual rent, and the exact rate depends on the length of the tenancy.
• An additional RM10 usually applies for each stamped duplicate copy.

For example, for a 1-year tenancy at RM24,000 per year (RM2,000 per month), the stamp duty works out to about RM87, not RM24,000 tax.

Example 2: Property Purchase

• Tiered percentage rates based on property value
• Higher rates apply for foreign buyers
• Separate duties apply for SPA and MOT

This is why property stamp duty can feel painful, while tenancy duty feels forgettable.

What Changes for Stamp Duty in 2026?

2026 is not just another year, well it is but it also brought along new changes.

Malaysia has introduced the Stamp Duty Self-Assessment System (SDSAS).This changes how stamp duty is declared, assessed, and enforced.

What Is Stamp Duty Self-Assessment?

Before 2026:

• You submitted documents
• Authorities assessed duty
• You paid what was assessed

From 1 January 2026:

• You assess your own stamp duty
• You declare it via the LHDN MyTax system
• You are legally responsible for accuracy

In short, “I didn’t know” is no longer a defence.

What This Means For you

Under self-assessment:

• If you underpay, penalties apply
• If you misclassify a document, penalties apply
• If you delay stamping, penalties apply
• If your lawyer or agent gets it wrong, you are still liable.

This is similar to income tax self-assessment. Responsibility shifts to the taxpayer.

Penalties of non-compliance for Stamp Duty

Failure to stamp or late stamping of a chargeable instrument

Relevant Law: Stamp Act 1949 (Act 378), Section 47A (as amended from 1 January 2025)

Penalty: If an instrument is stamped late:

• Within 3 months of the stamping deadline – RM50 or 10% of the unpaid duty (whichever is higher)
• More than 3 months after the stamping deadline – RM100 or 20% of the unpaid duty (whichever is higher)

Wilful evasion of stamp duty

Relevant Law: Stamp Act 1949 (Act 378), including Section 65 (as amended)

Penalty

• Fine between RM1,000 and RM20,000 and/or imprisonment, depending on the seriousness of the offence

False statement 

Relevant Law: Stamp Act 1949 (Act 378), including Sections 72C and 72D (effective from 1 January 2026)

Penalty

• Fine between RM1,000 and RM10,000; and
• A special penalty equal to the amount of stamp duty underpaid

Under-declaration 

Relevant Law: Stamp Act 1949 (as amended for self-assessment, effective 1 January 2026)

Penalty

• Recovery of the unpaid stamp duty, plus the special penalties above
• Liability remains with the taxpayer, even if an agent or lawyer prepared or submitted the documents on their behalf

Who Is Most Affected by the 2026 Changes?

These groups should pay extra attention:

• Property buyers
• Landlords with multiple tenancies
• SMEs issuing contracts regularly
• Companies restructuring shares
• Employers issuing formal agreements
• Anyone relying heavily on templates

If your business runs on documents, stamp duty is now part of your risk management.

How to Stamp a Document in Malaysia

Stamping in Malaysia is now digital-first and, from 1 January 2026, handled mainly through LHDN’s MyTax portal via the e-Duti Setem module. 

Physical submissions are only needed in specific or complex cases when requested by LHDN.

Step 1: Prepare the final signed document

Ensure the document is fully signed by all required parties. Unsigned or draft versions should not be submitted for stamping.

Step 2: Create or log in to your LHDN MyTax account

You must have an active MyTax account. Individuals and companies both use the same portal.

Step 3: Access the e-Duti Setem module

Within MyTax, select the stamp duty or e-Duti Setem section to begin a new submission.

Step 4: Upload the document

Upload a clear digital copy of the signed agreement. The system will treat this as the official instrument for assessment.

Step 5: Declare the document details

Select the correct document type and declare key details such as consideration value, rental amount, or contract value. Accuracy here is critical.

Step 6: Self-assess the stamp duty payable

Under the self-assessment system, you are responsible for calculating and declaring the correct stamp duty amount based on the document.

Step 7: Make electronic payment

Pay the declared stamp duty through the available online payment methods in MyTax.

Step 8: Receive the digital stamp certificate

Once payment is confirmed, a digital stamp certificate or acknowledgement is issued. This serves as proof of stamping.

Important Things First-Timers Should Know

• There are no physical stamps or counter visits
  Everything is done online, including assessment, payment, and confirmation.
  
• You are responsible for correctness
  From 2026 onwards, LHDN does not pre-check your calculation. Errors may be detected later through audits.
  
• Deadlines still apply
  Documents must be stamped within the prescribed time frame, even though the process is digital.
  
• Agents and lawyers do not remove liability
  Even if someone submits on your behalf, the legal responsibility remains with you.

Digital stamping is faster and more convenient, but it also means there is no buffer for casual mistakes. 

Getting the document type and value right is now part of basic compliance.

Common Stamp Duty Mistakes People Still Make

Even experienced businesses repeat these errors:

• Using the wrong document category
• Declaring incorrect consideration value
• Forgetting stamping deadlines
• Assuming exemptions apply automatically
• Treating stamp duty as “too small to matter”

Under SDSAS, these mistakes carry real financial consequences.

Is Stamp Duty the Same as SST or Income Tax?

No, and mixing them up causes compliance confusion.

Stamp duty exists even if no money changes hands, as long as legal rights are created.

Does Everyone Need a Lawyer or Accountant for Stamp Duty?

No. Malaysian law does not require you to appoint a lawyer or accountant solely to stamp a document.

Under the Stamp Act 1949, the legal obligation is to ensure the instrument is correctly stamped and duty is paid, regardless of who performs the submission.

Situations Where Self-Stamping Is Commonly Acceptable

For straightforward documents, many individuals and businesses can self-handle stamping if they understand the rules:

• Simple tenancy agreements
• Basic employment contracts
• Standard loan or financing agreements

LHDN allows individuals and companies to submit and self-assess stamp duty directly through MyTax without professional representation.

Situations Where Professional Review Is Strongly Recommended

For higher-risk or higher-value documents, professional involvement is advisable due to complexity and audit exposure:

• Property transfers and conveyancing documents
• Share transfers or corporate restructuring instruments
• Complex commercial or cross-border agreements

This is especially important from 2026 onwards, as stamp duty is self-assessed and errors may only be detected later through audits or enforcement action.

Even when a lawyer or agent prepares or submits the documents:

• Legal responsibility remains with the taxpayer or document owner
• Incorrect stamping can still result in penalties under the Stamp Act 1949

Professional help reduces risk, but it does not transfer liability. Let us be clear on this.

Stamp Duty Is Small, Until It Is Not

Stamp duty often feels minor because the amounts are usually small and the process seems administrative. 

In 2026, that assumption no longer holds because stamp duty is now self-assessed, digitally tracked, and enforceable in the same way as other tax obligations.

• Handled properly, stamp duty is routine and uneventful. 
• Handled casually, it can surface later as penalties, delays, or audit issues when documents matter most.

At Accounting.my, we help individuals and businesses manage stamp duty correctly as part of our broader tax, company secreterial, and other accounting service. 

Whether you need support with document compliance, tax advisory, or corporate filings, our team ensures nothing is overlooked and everything is defensible.

If you prefer certainty over surprises, speak to us before issues arise.

Source:

• LHDN – Sistem Taksir Sendiri Duti Setem (STSDS) – confirms the phased introduction of the Stamp Duty Self-Assessment System from 1 January 2026 and scope by instrument type.
• LHDN / KPMG / law firms – e-Duti Setem and MyTax transition 
• Rahmat Lim & Partners – “Stamp Act 1949 amendments gazetted, laying groundwork for self-assessment regime”
  • Minimum RM10 duty on most instruments (except cheques and contract notes)
  • Increased penalties for late stamping and fraudulent behaviour
  • Framework for self-assessment and new offences.
• LHDN – “Penalty (Stamp Duty)” + penalty guidelines
• KPMG / employer-focused guides (IFCA, Ajobthing– echo the same penalty structure from 1 January 2025 and explain how it applies in practice for employment contracts and other instruments.
• Maybank, iProperty, PropertyGuru, Wen Jie & MahWengKwai tenancy guides – confirm tenancy stamp duty mechanics, including:
  • First RM2,400 of annual rent exempt
  • Duty calculated per RM250 of annual rent (or part thereof) above exemption
  • Rates vary by tenancy duration (1 year or less, 1–3 years, more than 3 years)
  • RM10 per stamped copy of tenancy agreement.
• Azmi Law / RDS Law / Ecovis & similar firm alerts – support your explanation that from 1 January 2026 taxpayers:
  • Self-assess, declare, and pay stamp duty themselves
  • Use e-Duti Setem via MyTax
• Stamp Duty Audit Framework (IRB)