Stamp Duty Calculator: Compute Stamp Duty for Your Property Purchase
When a buyer decides to buy a property and takes a loan for that, there are some costs to be incurred for the transaction.
These include stamp duties, legal fees and other costs. We will explain what is stamp duties and legal fees.
Stamp duties
Stamp duties ad valorem (in Bahasa Malaysia, it is known as ‘setem duti’) are duties charged by the Malaysian government for the adjudication of any document that is chargeable with the duties.
These documents that are chargeable include sale and purchase agreements (SPA) and loan agreements. These documents are usually used when someone buys a property and takes a home loan from the bank to finance the transaction. These duties are paid by the buyer.
The stamp duty Malaysia calculation for property acquisition depends on mainly 3 factors:
Type of document: The setem duti calculation for sale and purchase agreements and loan agreement is based on different rate and follow the 1st Schedule of the Stamp Act 1949.
The exact computation will be explained and shown in the section below.
Purchase price or market value of the property, whichever is higher. For sale and purchase agreements, the duties will be based on the purchase price or market value of the property, whichever is higher.
In some cases, Lembaga Hasil Dalam Negeri (LHDN), the assessing authority may assess the market value of the property to be higher than the purchase price.
Exemption: The government may provide some incentives or reduced rates of duties for first-time home-buyers, making homeownership more accessible.
After one has submitted the sale and purchase agreements to LHDN for adjudication (usually done by the buyer’s lawyer), and after the amount of setem duti is adjudicated, the buyer must pay the amount within 30 days of the adjudication.
If the buyer does not pay the amount or pay deficient duty, it may cause the transfer of the properties to be delayed.
You may calculate the duties for your properties’ acquisition using our stamp duty calculator Malaysia above.
Legal Fees
In a property sale transaction, both buyer and seller usually appoint their own lawyer to represent and advise them to ensure their rights are protected. The lawyers may charge for their services and the charges include:
Legal Fees: The lawyers charge this fee for their services such as giving legal advice, representing the clients in the process, and preparing documents and materials.
The legal fees for sales and purchase agreements and loan agreements are calculated according to the specific sections in Solicitors’ Remuneration Order 2023 and the exact computation will be explained and shown in the section below.
Disbursements: These Include expenses like filing charges, postage, and photocopying incurred by the lawyer on the client's behalf.
Taxes: Some lawyers may charge service tax under the Service Tax Act 2018, while others don't. It is advisable to ask them whether they charge such tax.
The Calculation for Setem Duti and Legal Fees
As mentioned above, the calculation for stamp duty fee for sale and purchase agreements and loan agreements are different where both fees can be calculated using our stamping fee calculator above.
Our calculator above sometimes may be known as a ‘mot stamp duty calculator’ because ‘mot’ which stands for Memorandum of Transfer, is a document that is submitted for adjudication of setem duti in a sale and purchase transaction for the transfer of property (when there is a title to the property).
Calculation For Setem Duti
When the buyer takes a loan for the acquisition of property, there are 2 types of setem duti to be paid: one for the sale and purchase agreements and one for the loan agreement.
The calculation of setem duti for the SPA/ mot stamp duty is based on the below formula:
| The purchase price or market value of the property, whichever is higher (‘Adjudicated value’) | Setem Duti (% of the adjudicated value) |
|---|---|
| First RM 100,000 | 1% |
| RM 100,001 to 500,000 | 2% |
| RM 500,001 to RM1,000,000 | 3% |
| Any amount exceeding RM1,000,000 | 4% |
2. The stamp duty for loan agreement Malaysia (including home loan) is based on this formula: 0.5% of the total loan amount
Calculation For Legal Fees
On the other hand, there are also legal fees to be paid when engaging a lawyer for sale & purchase and loan transactions.
The legal fees can be calculated using our calculator above which is sometimes known as ‘spa legal fees calculator Malaysia/spa legal fee calculator’ as it calculates the legal fees for SPA.
The calculation for the sale and purchase agreements is based on the below formula according to the 1st Schedule of the Solicitors Remuneration Order 2023
| Purchase Price or Adjudicated Value | Scale fee |
|---|---|
| For the first RM500,000 | 1.25% (subject to a minimum of RM500) |
| RM 500,001 to RM 7,500,000 | 1% |
| Any amount exceeding RM7,500,000 | Subject to negotiation on the excess but shall not exceed 1% of such excess |
2. Loan agreement: The legal fee for a loan agreement, including a home loan is based on the below formula:
| Amount of loan | Scale fee |
|---|---|
| For the first RM500,000 | 1.25% (subject to a minimum of RM500) |
| RM 500,001 to RM 7,500,000 | 1% |
| Any amount exceeding RM7,500,000 | Subject to negotiation on the excess but shall not exceed 1% of such excess |
Benefits of using Stamp Duty Calculator
Both clients and lawyers can benefit from using our calculator above. Among these benefits are:
Budgeting: It helps in budgeting for property acquisition by calculating the overall cost involved and ensures that sufficient funds are available to cover all expenses, including legal fees.
Convenient, accurate, and saves time: A dependable stamp duty calculator Malaysia above provides convenience by eliminating the need for manual calculations.
You can quickly insert the necessary details such as property acquisition price and loan margin into our free Malaysia mot calculator/mot calculator Malaysia above to obtain an accurate estimation of setem duti.
Limitations
There may be limitations to our stamp duty calculator due to some factors. The factors are:
Changing laws and guidelines: The law and the regulations set by the government may change from time to time.
For example, stamp duty exemption 2023 (year) may not apply in the future due to changes in government policies.
Different rates in disbursements: Law firms may charge different rates for disbursements which may cause the charges to differ slightly.
Tenancy Agreement Stamp Duty
If you rent a property from others with a specified rental rate, whether for business or residential use, you may sign a tenancy agreement which is subject to setem duti too.
These duties sometimes may be known as ‘tenancy agreement stamp duty Malaysia’.
The calculation of setem duti and lawyer fees for these agreements can be generated using our tenancy agreement stamp duty calculator.
Disclaimer
Due to the reasons mentioned above and other reasons, our stamp duty calculator offers an estimate of expenses and might not correctly represent the completeness, correctness, truth, and accuracy of the calculations.
Please note that we shall not be liable and responsible for any loss or damages suffered; howsoever arising due to any inaccurate terms, information, or contents in this calculator on our website, as a result of your reliance.
Frequently Asked Questions
What is stamp duty?
In Malaysia, stamp duties are charges imposed by the government on some instruments that are chargeable with setem duti.
These instruments include sale and purchase agreements and loan agreements and the calculation for the setem duti differs between them.
How much is stamp duty in Malaysia?
On the question, ‘How is stamp duty calculated?’, setem duti is calculated based on the type of document.
After ascertaining the type of document etc. loan agreement, then refer to the law in Malaysia, that is the Stamp Act 1949 for the calculation.
How do you calculate stamp duty on a property transfer?
On the question ‘How to calculate stamp duty for transfer of property in Malaysia’, you can calculate it using our stamp duty calculator/ free mot calculator above.
The computation mainly depends on the purchase price or market value of the property, whichever is higher
Where can I find the tenancy stamp duty calculator?
You can calculate the stamp duty tenancy agreement/ tenancy agreement stamp duty Malaysia at our tenancy agreement stamp duty calculator.
On the other hand, the adjudication for a tenancy agreement Malaysia is usually done through the LHDN’s websites or at the LHDN’s counter.