Introduction

Malaysia stamp duty assessment ensures property and share transfers are taxed fairly. Administered by the Inland Revenue Board (LHDN), assessment rules prevent undervaluation and tax evasion.

Liability to Pay Stamp Duty

• Assessment is the responsibility of the buyer or transferee.
• Once assessed, the duty cannot be revoked, but appeals are allowed.

Stages of Real Property Assessment

JPPH Valuation & Additional Assessment

• JPPH (Valuation & Property Services Dept.) may assess property 35% higher than private valuation.
• If JPPH value > initial duty paid, an additional assessment is issued within 3 months.
• Taxpayer must pay within 30 days, or the bank guarantee is used.

Penalties and Appeals

• 10% penalty applies if the bank guarantee doesn’t cover the shortfall.
• If JPPH duty exceeds (Initial + Guarantee) by >30%, an extra 10% penalty applies.
• Taxpayers may appeal within 30 days.

Key Takeaways

• Buyer/transferee is liable for duty.
• Assessment involves private valuation and JPPH verification.
• Late or insufficient payment triggers penalties.
• Bank guarantees protect against tax evasion.

FAQ

Q1: Who pays stamp duty in Malaysia?
The buyer or transferee, as outlined in the Stamp Act 1949.

Q2: What is a bank guarantee in stamp duty?
A guarantee (min 6 months) to cover extra duty if JPPH valuation > private valuation.

Q3: What if I disagree with the assessment?
You can appeal within 30 days of the additional assessment.

Q4: What happens if payment is delayed?
Penalties apply, up to 10% or more depending on the shortfall.

ANC Group – Your Personal Tax Advisor

Tax consulting is the core service of ANC Group. Our tax professionals provide clients with comprehensive tax support and guidance. We offer tax consulting and compliance services for expatriates, entrepreneurs, and listed and non-listed companies.

Our tax consulting services include business tax, transaction tax, personal tax, and corporate income tax. We don’t just guide you in interpreting and applying complicated taxation rules, but to explore new opportunities and business trends.

ANC Group keep you abreast with Malaysia tax updates and any changes in the local regulations.

We work closely with industry specialists, authorities, and associated professionals within ANC Group to provide the best-in-class integrated tax planning solutions. ANC specialists coordinate the accounting and taxation services to bring your business to success.

If you need professional tax advisory services regarding the Malaysia Income Tax Act 1967, our team is ready to assist you. Contact us here to discuss how we can support your business.