Q：
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What is stamp duty?
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A：
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Stamp duty is a type of tax collected in Malaysia and applied to a wide range of instruments, as outlined in the First Schedule of the Stamp Duty Act 1949 (“the Act”). The term 'instrument' refers to any written document, whether legal, commercial, or financial.
An unstamped or inadequately stamped instrument is not acceptable as evidence in a court of law, and no public officer will act upon it.
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Q：
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When is the share transfer form required to be stamped?
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A：
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If the share transfer form is executed in Malaysia, it must be stamped within 30 days from the date of execution. However, if the share transfer form is executed outside of Malaysia, it has to be stamped within 30 days of its receipt in Malaysia.
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Q：
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When is the stamp duty payment due?
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A：
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Taxpayer is required to pay the stamp duty within 30 days from the date of the assessment notice.
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Q：
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What is the stamp duty rate for share transfer?
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A：
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The rate of stamp duty for all stocks, shares or marketable securities is RM3 per RM1,000 (or 0.3%) or fractional part thereof. The stamp duty is to be imposed on the value of shares rounded up to the nearest thousand.
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Q：
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What document in required to be submitted together with the share transfer form?
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A：
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The company must submit its latest audited accounts together with the share transfer form for adjudication. For companies exempt from audit, unaudited accounts may suffice for adjudication.
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Q：
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Who should pay the stamp duty?
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A：
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Pursuant to Section 33 of the Act, the transferee is responsible for paying the stamp duty in the event of a share transfer.
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Q：
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Would stamp duty apply if a company increases its share capital?
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A：
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No, stamp duty is not applicable in the event of increase of share capital. It is only payable in the event of share transfers.
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