Penalty

Information on Stamp Duty


In Malaysia, Stamp duty is a tax levied on a variety of written instruments specifies in the First Schedule of Stamp Duty Act 1949. In general term, stamp duty will be imposed to legal, commercial and financial instruments.

There are two types of Stamp Duty namely ad valorem duty and fixed duty. For the ad valorem duty, the amount payable will vary depending on type and value of the instruments.

An instrument is required to be stamped within 30 days of its execution if executed within Malaysia. If the instrument is executed outside Malaysia, it must be stamped within 30 days after it has been first received in Malaysia.

Examples of Instruments Subjected to Stamp Duty

  1. Real Properties Transfer
  2. Share Transfer
  3. Business Transfer
  4. Rental or Lease
  5. Security
  6. Selling of Annuity
  7. General Stamping
  8. Section 15/15A relief
  9. Compound Duty payment
  10. Replica
  11. Repayment
  12. Appeal

Penalty

If the instrument is not stamped within the period stipulated, a penalty of.

  • RM25.00 or 5% of the deficient duty, whichever is the greater, if stamped within 3 months after the time for stamping;
  • RM50.00 or 10% of the deficient duty, whichever is the greater, if stamped after 3 months but not later than 6 months after the time for stamping;
  • RM100.00 or 20% of the deficient duty, whichever is the greater, if stamped after 6 months from the time for stamping;

may be imposed.

Stamp Duty Payment

Stamp duty payment can be made through the following method.

  1. Cash if the duty does not exceed RM100
  2. Revenue Stamp if the duty does not exceed RM500
  3. Money Order, Solicitor`s Cheque or Bank Draft, made payable to the Collector of Stamp Duty and sent together with the relevant instrument to the stamp duty office by hand or through registered post

Income Tax Offences, Fines and Penalties


As per Income Tax Act (ITA) 1967 any person who committed for an offence will be fine either through penalty of imprisonment or both depending on severity or the number of offences.

The following table is the summary of the offences, fines & penalties for each offence.

Type Of Offences Provisions Under ITA 1967 Amount Of Fine (RM)
Fail to furnish an Income Tax Return Form. 112(1) 200 to 2,000 or imprisonment or both
Fail to give notice of changeability to tax. 112(1) 200 to 2,000 or imprisonment or both
Make an incorrect tax return by omitting or understating any income. 113(1)(a) 1,000 to 10,000 and 200% of tax undercharged
Give any incorrect information in matters affecting the tax liability of a taxpayer or any other person. 113(1)(b) 1,000 to 10,000 and 200% of tax undercharged
Wilfully and with intent to evade or assist any other person to evade tax. 114(1) 1,000 to 20,000 or imprisonment or both and 300% of tax undercharged
Assist or advise others to under declare their income. 114(1A) 2,000 to 20,000 or imprisonment or both
Attempt to leave the country without payment of tax. 115(1) 200 to 2,000 or imprisonment or both
Obstruct any authorized officer of IRBM in carrying out his duties. 116 1,000 to 10,000 or imprisonment or both
Fail to comply with an order to keep proper records and documentation. 119A 300 to 10,000 or imprisonment or both
Fail to comply with a notice asking for certain information as required by IRBM. 120(1) 200 to 2,000 or imprisonment or both
Fail to give notice on changes of address within 3 months. 120(1) 200 to 2,000 or imprisonment or both