4. Stamp duty
Your company is required to pay for Stamp Duty when instruments are involved, which are written
legal, commercial, and financial documents. Examples of taxable instruments are partnership
agreement and mortgage agreement. There are two types of Stamp Duty, one with a fixed rate
regardless of the amount stated in the instrument, the other which varies according to the nature of
the instrument and the value stipulated. Besides some situations where the Stamp Duty is
exempted, you may apply for Stamp Duty relief under certain cases.
Tax rate of stamp duty
All information regarding taxable instruments and exemptions are stated in the Stamp Act 1949.
Instruments that are chargeable for Stamp Duty are listed in the First Schedule together with the
rates while the persons liable to pay the Stamp Duty are listed in the Third Schedule.
When to pay stamp duty?
The instrument should be stamped within 30 days of the execution of the instrument. The following
are ways to pay stamp duty:
Digital Franking System
Stamp certificate
Compound duty
Revenue stamp (can be obtained from post offices)
Direct payment to the stamp duty counter
5. Sales & Service Tax (SST)
Sales tax is a single-stage tax charged on taxable goods manufactured in or imported into Malaysia
by a taxable person and is due when the goods are sold, disposed of, or first used with a total sale
value of more than RM500,000 in 12 months. There are exemptions for certain goods manufactured
or imported. Effective from 23rd March 2020, the following items will be exempted from import
duty and sales tax until a later date to be announced.
Face masks
Medical equipment such as infrared thermometers and thermal scanners
Laboratory equipment such as Inverted Microscope Automated Extractor Machine
Personal Protective Equipment (PPE) such as face and eye protection, gloves and protective
garments for surgical/medical use
Disposal items such as paper bed sheets, respiratory tubing and plastic test tubes
Not to be confused with service charge, service tax is charged on taxable services in Malaysia such
as accommodation, gaming, telecommunication services, etc. provided by a taxable person with a
total value of more than RM500,000 in 12 months. For the F&B industry, however, the threshold is
a total value of more than RM1,500,000 in 12 months. Credit card services have no threshold and a
different rate.
There are several laws that govern SST. You are required to register your company for SST if the
requirements are met.
When should the tax be paid?
SST should be paid bi-monthly, except for the 1st tax period after your registration with RMCD.
6. Real property gains tax (RPGT)
Real property gains tax is applicable only if your company disposes of chargeable assets such as
houses, commercial buildings, farms, and vacant lands, and also shares in real property companies,
gaining profit from the disposal. The calculation of chargeable gain is the disposal price minus by
acquisition price. Governed under the Real Property Gains Tax 1976, the tax rates differ according
to the holding period of the chargeable assets.
Contact Us
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Email: tannetinfo@gmail.com
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