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Stamp Act 1949
Conveyancing Law 1 (LAW512)
Universiti Teknologi MARA
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LAWS OF MALAYSIA
ONLINE VERSION OF UPDATED
TEXT OF REPRINT
Act 378
STAMP ACT 1949
As at 1 July 2014
2
STAMP ACT 1949
First Enacted ... ... ... ... 1949 (F. Ordinance No. 59 of 1949)
Revised ... ... ... ... ... 1989 (Act 378 w.e. 2 January 1990)
Latest amendment made by Act 761 which came into operation on ... ... ... ... 24 January 2014
PREVIOUS REPRINTS
First Reprint ... ... ... 2001 Second Reprint ... ... ... 2006
4 Laws of Malaysia A CT 378
Section
- Mode of paying and denoting duty
- Franking of certain instruments
- Authorized person to compound instrument
- How instruments are to be written and stamped
- Where duty chargeable depends on duty paid on another instrument
11 A. Replica
- Duplicate and counterparts
Valuation for Duty
12 A. Assessment of the value of property under transfer or settlement 13. Currency and securities 14. Instruments reserving interest 14 A. Principal securities in syariah financing
PART III
PROVISIONS APPLICABLE TO PARTICULAR INSTRUMENTS
- Relief from stamp duty in case of reconstructions or amalgamations of companies 15 A. Relief from stamp duty in case of transfer of property between associated companies
- Voluntary conveyance inter vivos
- How transfer for debts, stocks, securities, future payment and further consideration to be charged
- Duties on foreclosure orders
- Valuation in case of annuity
- Direction as to duty in case of certain conveyances 20 A. Exchange of real property 20 B. Vesting or transfer of an undivided interest in property
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Section
- Certain contracts to be chargeable as conveyances on sale
- Sale of annuity or right not before in existence
- What is to be deemed a conveyance, not being a sale or mortgage
- Leases, how to be charged in respect of produce, etc.
- Directions as to duty upon leases, etc
- Direction as to duty upon transfer of stock
- ( Deleted )
- Security for future advances, how to be charged
- ( Deleted ) 29 A. Directions as to duty upon a primary or principal security
- Directions as to sea policy
- Legal alteration in sea policies may be made
- Directions as to certain contract notes 32 A. Obligation to execute contract note
PART IV
LIABILITY FOR PAYMENT OF DUTY
- Duty by whom payable
- ( Deleted )
- Exemptions
PART V
ADJUDICATION AS TO STAMPS
- Mode of adjudication as to proper stamp 36 A. Initial duty
36 AA. Advance duty
36 B. Additional duty
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Section 53. Instruments impounded how dealt with 54. ( Deleted ) 55. Agreements evidenced by letters how stamped 56. Recovery of duty and penalty
PART VIII
ALLOWANCE FOR SPOILED STAMPS
- Allowance for spoiled stamps
- Allowance for misused stamps
- Allowance, how to be made 59 A. Stamp to include official receipt
PART IX
OFFENCES AND PENALTIES
- Not cancelling adhesive stamps 60 A. Failure to frank documents
- Penalty for not setting forth all the facts and circumstances
- ( Deleted )
- Penalty for executing and signing documents not duly stamped
- Penalty for failure to execute and transmit contract note
- Penalty for post-dating bills
- ( Deleted )
- Penalty for not making out policy other than on sea insurance or making one not duly stamped
- Penalty for assuring on sea insurance unless under policy duly stamped
- Penalty for issuing share warrant, etc. , not duly stamped
- ( Deleted )
- Penalty for unauthorized dealing in stamps
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Section
- Penalty for hawking stamps 72 A. Penalty relating to stamp certificates
- Postage stamps
- Fraud in relation to duty 74 A. Recovery from persons leaving Malaysia 74 B. Leaving Malaysia without payment of duties, etc.
- Institution and conduct of prosecution
PART X
MISCELLANEOUS
- Books, etc. , in the custody of public officers may be inspected without fee
- Collector may administer oaths 77 A. Electronic medium 77 B. Electronic assessment and stamping of instruments
- Revision of acts of Collector
- Responsibility for loss or damage
- Power to exempt, reduce or remit duties 80 A. Fund for Tax Refund
- Power to compound duties in case of issue of bonds, etc.
- Rules
- Repeal FIRST SCHEDULE SECOND SCHEDULE THIRD SCHEDULE FOURTH SCHEDULE FIFTH SCHEDULE SIXTH SCHEDULE
10 Laws of Malaysia A CT 378
(b) any instrument, attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another;
“charge” means any instrument whereby, for the purpose of securing the payment of any definite and certain sum of money advanced or lent at the time or previously due or foreborne to be paid or for the repayment of money to be thereafter lent, advanced or paid, or which may become due upon any account current, together with any sum already advanced or due, or without, as the case may be, or for the performance of any contract or engagement, one person creates a right over or charge upon any specified property; and includes any instrument which purports to create or in which any person agrees to create any such right or charge;
“cheque” means a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand;
“Collector” includes the Collector of Stamp Duties and every Deputy Collector of Stamp Duties appointed under section 3;
“continuation clause” in a policy of sea insurance made for time means an agreement to the following or the like effect, namely, that in the event of the ship being at sea or the voyage otherwise not completed on the expiration of the policy, the subject matter of the insurance shall be held covered until the arrival of the ship, or for a reasonable time thereafter not exceeding thirty days;
“contract note” means the note sent by a dealer or agent to his principal, or by any person who by way of business deals, or holds himself out as dealing, as a principal in any stock or marketable securities, advising the principal, or the vendor or purchaser, as the case may be, of the sale or purchase of any stock or marketable security, but does not include a note sent by a dealer or agent to his principal where the principal is himself acting as dealer or agent for a principal and is himself a person who bona fide carries on the business of a dealer in Malaysia;
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“conveyance on sale” includes every instrument and every decree or order of any Court, whereby any property, or any estate or interest in any property, upon the sale thereof is transferred to or vested in a purchaser or any other person on his behalf or by his direction;
“dealer” means any person licensed under the Securities Industry Act 1983 [ Act 280 ] to carry on the business of dealing in securities in Malaysia and is recognized as a member company by a stock exchange;
“die” includes any plate, type, tool or implement whatever used under the direction of the Collector for expressing or denoting any duty or rate of duty, or the fact that any duty or rate of duty or penalty has been paid, or that an instrument is duly stamped, or is not chargeable with any duty or for denoting any fee, and also any part of any such plate, type, tool or implement;
“duly stamped”, as applied to an instrument, means that the instrument bears an adhesive or impressed stamp of not less than the proper amount or the amount of initial duty or the amount of advance duty paid under subsection 37(1) and that such stamp has been affixed or used in accordance with the law for the time being in force:
Provided that a stamp certificate or official receipt for the proper amount or amount of initial duty or amount of advance duty may be attached or affixed to any instrument in lieu of the stamp, and the instrument shall be deemed to be duly stamped;
“duty” means any stamp duty for the time being chargeable under this Act or under any written law;
“equitable mortgage” means an agreement or memorandum, under hand only, relating to the deposit of any title deeds or instruments constituting or being evidence of the title to any property whatever (other than stock or marketable securities and a letter of hypothecation), or creating a charge on such property but does not include a registered charge on land in any State;
“executed” and “execution”, used with reference to instruments not under seal, mean “signed” and “signature”;
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which may become due upon an account current, together with any sum already advanced or due, or without, as the case may be; and includes—
(a) any conveyance of any property in trust to be sold or otherwise converted into money intended only as a security, and redeemable before the sale or other disposal thereof either by express stipulation or otherwise;
(b) any instrument in writing for defeating or making redeemable, or explaining or qualifying any conveyance of property, apparently absolute, but intended only as a security;
(c) any agreement for a mortgage or any agreement (other than an agreement chargeable with duty as an equitable mortgage), contract, or bond accompanied with a deposit of title deeds or with other instruments evidencing a right to property, for making a mortgage or any other security or conveyance as aforesaid of any property comprised in the title deeds or other instruments or for pledging or charging the same as a security; and
(d) any deed operating as a mortgage of any stock or marketable security;
“official receipt” means a receipt issued by or on behalf of the Collector for payment of stamp duties;
“paper” includes every material upon which words or figures can be expressed;
“policy of insurance” includes every writing whereby any contract of insurance is made or agreed to be made or is evidenced, and the expression “insurance” includes assurance;
“policy of sea insurance”—
(a) means any insurance, including re-insurance, made upon any ship or vessel, whether for marine or inland
14 Laws of Malaysia A CT 378
navigation, or upon the machinery, tackle or furniture of any ship or vessel or upon any goods, merchandise or property of any description whatever on board of any ship or vessel or upon the freight of or any other interest which may be lawfully insured in or relating to any ship or vessel; and
(b) includes any insurance of goods, merchandise or property for any transit which includes, not only a sea risk under paragraph (a) , but also any other risk incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance;
“power of attorney” means any instrument except a warrant to act as a solicitor in any judicial proceeding, empowering a specified person to act in the stead of the person executing it;
“promissory note” means any document or writing (except a bank note) containing a promise to pay any sum of money and includes a note promising the payment of any sum of money out of any particular fund which may or may not be available or upon any condition or contingency which may or may not be performed or happen;
“property” includes movable or immovable property and any estate or interest in any property movable or immovable, whether in possession, reversion, remainder or contingency, and any debt, and anything in action, and any other right or interest in the nature of property which is capable of being disposed of and has a value in it;
“settlement” means any non-testamentary disposition in writing whether made voluntarily or upon a good or valuable consideration other than a bona fide pecuniary consideration whereby any definite and certain property is settled or agreed to be settled in any manner for any purpose whatsoever;
“small and medium enterprise” means—
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(2) The Collector shall, if he considers it necessary in the execution of his duties under this Act, at all times have full and free access to all lands, buildings and places, and all books and documents, whether in the custody or under the control of a public officer or a body corporate or any other person whatsoever, for the purpose of ascertaining the market value of any property or of ascertaining any facts or inspecting any books or documents which the Collector considers necessary or relevant for the purposes of this Act, or considers likely to provide any information otherwise required for the purposes of this Act, and may, without fee or reward, make extracts from or copies of any such books or documents.
(3) The Collector may take possession of any such books or documents where in his opinion—
(a) the inspection or copying thereof or extraction therefrom cannot reasonably be performed without taking possession thereof;
(b) the books or documents may be interfered with, concealed or destroyed unless possession thereof is taken; or
(c) the books or documents may be required as evidence in any proceeding instituted or commenced under or for any of the purposes of this Act.
(4) For the purpose only of ascertaining the market value of any property, the Collector may in writing authorise any valuer employed by the Government, whether he be a public officer or a person privately practising as a valuer, to exercise any of the powers conferred upon the Collector by this section.
(5) Any person who obstructs or hinders the Collector, or any valuer duly authorized by the Collector, in the exercise of any of his powers under this section, or who refuses or fails to comply with a notice under subsection (1) or with any direction given in good faith by the Collector or any such valuer for any of the purposes of this
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section, shall be liable to a fine not exceeding two hundred and fifty ringgit.
PART II
PROVISIONS APPLICABLE TO INSTRUMENTS
GENERALLY
Liability of Instruments to Duty
Instruments chargeable with duty
4. (1) Subject to this Act and subject to the exemptions contained in this Act and in any written law for the time being in force, the several instruments specified in the First Schedule shall, from and after the commencement of this Act, be chargeable with the several duties specified in such Schedule.
(2) Nothing in this Act shall render liable to additional duty any instrument whereon duty is expressly imposed under any other written law in force in Malaysia.
(3) Where in the case of any sale, lease, charge, settlement, exchange or partition several instruments are employed for completing the transaction, the principal instrument only shall be chargeable with the duty prescribed in the First Schedule for the conveyance, lease, charge, settlement or partition and each of the other instruments shall be chargeable with a duty of ten ringgit only; and the parties may determine for themselves which of the instruments so employed shall, for the purpose of this subsection, be deemed to be the principal instrument.
(4) The duties imposed by such Schedule may be cancelled, varied or added to by a resolution of the House of Representatives.
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accordance with that subsection, the company or foreign company and the officer of the company or foreign company responsible for making the entry in the register shall be liable to a fine not exceeding two hundred and fifty ringgit.
(4) In this section—
(a) ( Omitted );
(b) expressions which are defined in the Companies Act 1965 shall have the same meaning as in that Act.
Payment of Duty
All facts and circumstances to be set out
5. All the facts and circumstances affecting the liability of any instrument to duty or the amount of the duty with which any instrument is chargeable are to be fully and truly set forth in the instrument, and the Collector may require such evidence to be furnished as may be reasonably necessary to prove that all such facts and circumstances are truly set forth.
5 A. ( Deleted by Act 661 ).
Instrument relating to distinct matters
6. Except where express provision to the contrary is made by this Act or by any other written law—
(a) an instrument containing or relating to several distinct matters shall be separately and distinctly charged, as if it were a separate instrument, with duty in respect of each of the matters;
(b) an instrument made for any consideration in respect of which it is chargeable with ad valorem duty, and also for
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any further or other valuable consideration or considerations, shall be separately and distinctly charged, as if it were a separate instrument, with duty in respect of each of the considerations.
Mode of paying and denoting duty
7. (1) Subject to any rules made under paragraph 82 (b) , all duties with which any instruments are chargeable under this Act shall be paid, and payment shall be indicated on such instrument by—
(a) means of an adhesive stamp;
(b) affixing an official receipt to such instrument; or
(c) attaching a stamp certificate to such instrument.
(2) Where duty is required to be paid or indicated by means of an adhesive stamp, such stamp shall be a revenue stamp issued under this Act for the payment of stamp duty, which, at the time the duty is to be paid or indicated, is a valid revenue stamp.
(3) Stamps used for any of the instruments described under any of the articles in the First Schedule and not included in the Second Schedule shall, and stamps used for any of the instruments described under any of the articles in the Second Schedule may, be cancelled as follows: The instrument, or the paper on which it is proposed to be written, shall be taken to the office of the Collector and the stamp shall there be cancelled by having the words “Stamp Office” with the name of the district and the date written or printed partly on the stamp and partly on the paper to which the stamp is affixed.
(4) Stamps used for any of the instruments described under any of the articles in the Second Schedule shall, unless cancelled in the manner provided in the last preceding subsection, be cancelled as follows: Whoever affixes any such stamp to any instrument chargeable with duty and which has been executed by any person
Stamp Act 1949
Course: Conveyancing Law 1 (LAW512)
University: Universiti Teknologi MARA
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