STAMP ACT 1949

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 378 STAMP ACT 1949 As at 1 January 2024 This text is ONLY AN UPDATED TEXT of the Stamp Act 1949 by the Attorney General’s Chambers. Unless and until reprinted pursuant to the powers of the Commissioner of Law Revision under subsection 14(1) of the Revision of Laws Act 1968 [Act 1], this text is NOT AN AUTHENTIC TEXT. 2 STAMP ACT 1949 First enacted … … … ... 1949 (F.M Ordinance No. 59 of 1949) Revised … … … ... 1989 (Act 378 w.e.f. 2 January 1990) Latest amendment made by Act 851 which came into operation on 1 January 2024; see section 51 of … … … ... Act 851 PREVIOUS REPRINTS First Reprint … … … … … … … 2001 Second Reprint … … … … … … … 2006 3 LAWS OF MALAYSIA Act 378 STAMP ACT 1949 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and application 2. Interpretation 3. Collector and Deputy Collectors of Stamp Duties 3A. Powers of Collector PART II PROVISIONS APPLICABLE TO INSTRUMENTS GENERALLY Liability of Instruments to Duty 4. Instruments chargeable with duty 4A. Stamp duty on instruments executed outside Malaysia effecting transfers of property in Malaysia Payment of Duty 5. All facts and circumstances to be set out 5A. (Deleted) 6. Instrument relating to distinct matters 4 Laws of Malaysia ACT 378 Section 7. Mode of paying and denoting duty 8. (Deleted) 9. Authorized person to compound instrument 10. How instruments are to be written and stamped 11. Where duty chargeable depends on duty paid on another instrument 11A. Replica 12. Duplicate and counterparts Valuation for Duty 12A. Assessment of the value of property under transfer or settlement 13. Currency and securities 14. Instruments reserving interest 14A. Principal securities in syariah financing PART III PROVISIONS APPLICABLE TO PARTICULAR INSTRUMENTS 15. Relief from stamp duty in case of reconstructions or amalgamations of companies 15A. Relief from stamp duty in case of transfer of property between associated companies 16. Voluntary conveyance inter vivos 17. How transfer for debts, stocks, securities, future payments and further consideration to be charged 18. Duties on foreclosure orders 19. Valuation in case of annuity 20. Direction as to duty in case of certain conveyances 20A. Exchange of real property 20B. Vesting or transfer of an undivided interest in property Stamp 5 Section 21. Certain contracts to be chargeable as conveyances on sale 22. Sale of annuity or right not before in existence 23. What is to be deemed a conveyance, not being a sale or mortgage 24. Leases, how to be charged in respect of produce, etc. 25. Directions as to duty upon leases, etc. 26. Direction as to duty upon transfer of stock 27. (Deleted) 28. Security for future advances, how to be charged 29. (Deleted) 29A. Directions as to duty upon a primary or principal security 30. Directions as to sea policy 31. Legal alteration in sea policies may be made 32. Directions as to certain contract notes 32A. Obligation to execute contract note PART IV LIABILITY FOR PAYMENT OF DUTY 33. Duty by whom payable 34. (Deleted) 35. Exemptions PART V ADJUDICATION AS TO STAMPS 36. Mode of adjudication as to proper stamp 36A. Initial duty 36AA. Advance duty 36B. Additional duty 36C. Where duty chargeable is equal or lower than advance duty paid and refund of advance duty paid in excess 6 Laws of Malaysia ACT 378 Section 36D. Finality of assessment 37. Certificate by Collector 38. Exception to sections 36, 36A, 36AA, 36B, 36C and 37 38A. Notice of objection 39. Appeal to High Court 40. Time of stamping after adjudication PART VI OF THE TIME OF STAMPING INSTRUMENTS 41. Instruments executed in Malaysia 42. Instruments executed out of Malaysia 43. Bills, cheques or notes drawn out of Malaysia 44. Bills of exchange and cheques accepted or payable outside Malaysia 45. Power of drawee to stamp bills or cheques 46. Transfers of shares 47. Stamping of instruments after execution 47A. Penalty for late stamping 48. Denoting penalty 49. Persons liable to penalty 50. Penalty, how recoverable 50A. Error in assessment, etc. PART VII INSTRUMENTS NOT DULY STAMPED 51. Examination and impounding of instruments 52. Instruments not duly stamped inadmissible in evidence Stamp 7 Section 53. Instruments impounded how dealt with 54. (Deleted) 55. Agreements evidenced by letters how stamped 56. Recovery of duty and penalty PART VIII ALLOWANCE FOR SPOILED STAMPS 57. Allowance for spoiled stamps 58. Allowance for misused stamps 59. Allowance, how to be made 59A. Stamp to include official receipt PART IX OFFENCES AND PENALTIES 60. (Deleted) 60A. (Deleted) 61. Penalty for not setting forth all the facts and circumstances 62. (Deleted) 63. Penalty for executing and signing documents not duly stamped 64. Penalty for failure to execute and transmit contract note 65. Penalty for post-dating bills 66. (Deleted) 67. Penalty for not making out policy other than on sea insurance or making one not duly stamped 68. Penalty for assuring on sea insurance unless under policy duly stamped 69. Penalty for issuing share warrant, etc., not duly stamped 70. (Deleted) 71. (Deleted) 8 Laws of Malaysia ACT 378 Section 72. (Deleted) 72A. Penalty relating to stamp certificates 73. (Deleted) 74. Fraud in relation to duty 74A. Recovery from persons leaving Malaysia 74B. Leaving Malaysia without payment of duties, etc. 75. Institution and conduct of prosecution PART X MISCELLANEOUS 76. Books, etc., in the custody of public officers may be inspected without fee 77. Collector may administer oaths 77A. Electronic medium 77B. Electronic assessment and stamping of instruments 77C. Tax identification number 78. Revision of acts of Collector 79. Responsibility for loss or damage 80. Power to exempt, reduce or remit duties 80A. Fund for Tax Refund 80B. Power of Collector to remit duties 81. Power to compound duties in case of issue of bonds, etc. 82. Rules 83. Repeal FIRST SCHEDULE SECOND SCHEDULE (Deleted) THIRD SCHEDULE FOURTH SCHEDULE FIFTH SCHEDULE (Deleted) SIXTH SCHEDULE 9 LAWS OF MALAYSIA Act 378 STAMP ACT 1949 An Act relating to stamp duties. [Peninsular Malaysia— 5 December 1949; Sabah and Sarawak— 1 October 1989, P.U. (B) 441/1989;] PART I PRELIMINARY Short title and application 1. (1) This Act may be cited as the Stamp Act 1949. (2) This Act shall apply throughout Malaysia. Interpretation 2. In this Act, unless the context otherwise requires— “banker” means— (a) any person licensed under the Financial Services Act 2013 [Act 758] to carry on a banking business in Malaysia; (b) any person licensed under the Islamic Financial Services Act 2013 [Act 759] to carry on an Islamic banking business in Malaysia; or (c) a development financial institution prescribed under the Development Financial Institutions Act 2002 [Act 618]; 10 Laws of Malaysia ACT 378 “bond” means— (a) any instrument whereby a person obliges himself to pay money to another on condition that the obligation shall be void if a specified act is performed or is not performed, as the case may be; (b) any instrument, attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; “charge” means any instrument whereby, for the purpose of securing the payment of any definite and certain sum of money advanced or lent at the time or previously due or foreborne to be paid or for the repayment of money to be thereafter lent, advanced or paid, or which may become due upon any account current, together with any sum already advanced or due, or without, as the case may be, or for the performance of any contract or engagement, one person creates a right over or charge upon any specified property; and includes any instrument which purports to create or in which any person agrees to create any such right or charge; “cheque” means a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand; “Collector” includes the Collector of Stamp Duties and every Deputy Collector of Stamp Duties appointed under section 3; “continuation clause” in a policy of sea insurance made for time means an agreement to the following or the like effect, namely, that in the event of the ship being at sea or the voyage otherwise not completed on the expiration of the policy, the subject matter of the insurance shall be held covered until the arrival of the ship, or for a reasonable time thereafter not exceeding thirty days; “contract note” means the note sent by a dealer or agent to his principal, or by any person who by way of business deals, or holds himself out as dealing, as a principal in any stock or marketable securities, advising the principal, or the vendor or purchaser, as the case may be, of the sale or purchase of any stock or marketable security, but does not include a note sent by a dealer or agent to his Stamp 11 principal where the principal is himself acting as dealer or agent for a principal and is himself a person who bona fide carries on the business of a dealer in Malaysia; “conveyance on sale” includes every instrument and every decree or order of any Court, whereby any property, or any estate or interest in any property, upon the sale thereof is transferred to or vested in a purchaser or any other person on his behalf or by his direction; “dealer” means any person licensed under the *Securities Industry Act 1983 [Act 280] to carry on the business of dealing in securities in Malaysia and is recognized as a member company by a stock exchange; “die” includes any plate, type, tool or implement whatever used under the direction of the Collector for expressing or denoting any duty or rate of duty, or the fact that any duty or rate of duty or penalty has been paid, or that an instrument is duly stamped, or is not chargeable with any duty or for denoting any fee, and also any part of any such plate, type, tool or implement; “duly stamped”, as applied to an instrument, means — (a) the instrument bears an adhesive or impressed stamp of not less than the proper amount or the amount of initial duty or the amount of advance duty paid under subsection 37(1) and that such stamp has been affixed or used in accordance with the law for the time being in force; (b) any official receipt for the proper amount or the amount of initial duty or the amount of advance duty is affixed to the instrument; (c) a stamp certificate for the proper amount or the amount of initial duty or the amount of advance duty is attached to the instrument if the instrument is stamped through an electronic medium; or *NOTE―The Securities Industry Act 1983 [Act 280] was repealed by the Capital Market and Services Act 2007 [Act 671]—see section 381 of Act 671. 12 Laws of Malaysia ACT 378 (d) the instrument is stamped by means of digital stamping for the proper amount or the amount of initial duty or the amount of advance duty; “duty” means any stamp duty for the time being chargeable under this Act or under any written law; “equitable mortgage” means an agreement or memorandum, under hand only, relating to the deposit of any title deeds or instruments constituting or being evidence of the title to any property whatever (other than stock or marketable securities and a letter of hypothecation), or creating a charge on such property but does not include a registered charge on land in any State; “executed” and “execution”, used with reference to instruments not under seal, mean “signed” and “signature”; “foreign currency loan” means any loan denominated wholly in currencies other than the Ringgit; “impressed stamp” means a stamp impressed by means of a die, or an adhesive stamp over which an impression, denoting the date of such impression, has been made by t