(Tax Update) Stamp Duty Is Not Always RM10

Many SME boss still think stamp duty is very simple.
“Any agreement just stamp RM10 only lah.”

This is the sentence that makes tax agent suddenly very quiet.
Because in Malaysia, stamp duty is not based on how simple your document looks.

It is not based on whether the agreement is one page or twenty pages.
It is not based on what title you put on top.
It is based on what the document actually does.

You call it “Letter of Undertaking.”
LHDN may say, “This one is security instrument.”

You call it “Friendly Loan Agreement.”
LHDN may say, “Friendly or not, still loan.”

You call it “family arrangement.”
LHDN may say, “No full consideration? Then we look at stamp duty properly.”

On 30 June 2026, LHDN issued a fresh guideline on stamp duty for instruments under the First Schedule of the Stamp Act 1949.

The guideline did not create a new law.
But it reminds SME boss one very important thing:

Stamp duty follows substance, not title.

If the document is a general instrument, maybe RM10 applies.
But once your document involves tenancy, share transfer, property transfer, business sale, loan, guarantee, assignment, or transfer of value, please don’t simply assume RM10.

Tenancy agreement is not simply RM10.
It depends on annual rental and lease period.

Share transfer in Sdn Bhd is also not simply RM10.
LHDN may look at the consideration or the value of shares, whichever is higher.
For ordinary shares, Net Tangible Asset may become relevant.

Property transfer lagi cannot play-play.
The stamp duty can be much higher, depending on property value.

From 1 January 2026, residential property transferred to foreign company or non-citizen non-PR may attract a higher rate.
That one is not RM10.

That one is “boss, please sit down first.”
This is where many SME boss get caught.
They think stamping is just admin work.
Actually, stamping is part of transaction planning.

Rent shop lot.
Transfer shares to partner.
Sell business.
Take related party loan.
Give property to family member.
Sign guarantee.

All these are not just paperwork.
They are legal instruments.
And legal instruments can carry stamp duty consequences.

The most painful mistake is not only forgetting to stamp.
The more painful mistake is stamping under the wrong category and feeling very confident.

Because when LHDN reviews later, the question becomes:
“Why was this instrument stamped under the wrong item?”

By then, the agreement already signed.
The lawyer may have closed file.
The accountant may only see it after year end.

So SME boss, before signing any important document, don’t only ask:
“Can sign or not?”

Ask also:
“Stamp duty under which item?”

Because in business, a RM10 assumption can become a very expensive lesson.

Stamp duty is not about what you call the document.
It is about what the document really does.

Read the full content in our blog
https://www.ktp.com.my/blog/stamp-duty-calculator/06july2026