(TAX UPDATE) Stamp Duty RM10 …Then Why Mine Is RM1,000 ++?”

Introduction

Stamp Duty RM10… Then Why My Bill Is RM1,000 ++?”

“Boss… stamp duty is RM10 per copy right?”

Before I could reply, the voice on the phone suddenly became louder.

“Then why my account girl say the stamp duty almost RM1,000 +++?!”

For a few seconds I just listened quietly.

After more than 30 years advising SMEs, I can usually recognise this type of call immediately.

When a client starts with
“Boss… why so expensive?”

Two things usually happen.

First, the accounts girl will kena blamed.

Second, the tax law is being misunderstood.

So I asked him one simple question.

“Last time when you bought your property… how much stamp duty did you pay?”

There was a short silence.

Then he laughed a bit.

“Ya… that one a lot lah.”

Exactly.

When people buy property, everyone accepts that stamp duty can be thousands or even tens of thousands.

No one argues.

Because people know property stamp duty depends on value.

But when it comes to business documents, many people suddenly remember only one number.

RM10.

So I explained to him something very simple.

In Malaysia, stamp duty is imposed on documents, not on transactions.

The law governing this is the Stamp Act 1949.

In simple terms, there are two types of stamp duty.

Ad Valorem Duty

This means the duty depends on the value written in the document.

Examples include:

• Transfer of property
• Transfer of shares
• Loan agreements
• Security documents
• Certain capital market instruments

The higher the value in the document, the higher the stamp duty.

That is why property stamp duty can easily reach thousands.

Fixed Duty

Some documents have a fixed stamp duty, regardless of value.

For example:

• Power of Attorney
• Promissory Notes
• Insurance policies
• Company constitutional documents
• Duplicate instruments

In some of these cases, the duty may indeed be RM10.

But that only applies to specific instruments listed in the First Schedule of the Stamp Act 1949.

Not every document.

After I explained this, my client became quiet for a moment.

Then he said something very honest.

“Boss… actually I always thought stamp duty just RM10.”

I laughed.

Because many business owners think the same way.

Someone once heard “RM10 stamp duty”.

Then that number somehow becomes the answer for every document in business.

After many years in practice, I notice something interesting.

Most tax surprises in business are not caused by complicated law.

They are caused by small assumptions made before signing the document.

And when the bill finally appears…

the accounts department usually becomes the messenger of bad news.

That is why some of my SME clients have a simple habit.

Before signing any agreement, they send me one WhatsApp.

“Boss… this document got stamp duty issue or not?”

Sometimes that one message can save a lot of confusion later.

After advising businesses for more than three decades, one lesson remains very clear.

In tax and law, the details are always inside the document.

And stamp duty… is literally about the document.

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