Loan Agreement Stamp Duty Malaysia

Loan Agreement Stamp Duty Malaysia: What You Need to Know

In Malaysia, stamp duty is a tax that is imposed on certain types of legal documents, including loan agreements. If you are planning to take out a loan or lend money to someone, it is important to understand how loan agreement stamp duty works, and what the rates and exemptions are.

What is Loan Agreement Stamp Duty?

Loan agreement stamp duty is a tax that is imposed on loan agreements, which are legal documents that outline the terms and conditions of a loan. This tax is collected by the government to help fund public services and development projects.

In Malaysia, the stamp duty rates for loan agreements are regulated by the Stamp Act 1949. The amount of stamp duty that you need to pay will depend on the amount of the loan and the type of loan agreement.

Loan Agreement Stamp Duty Rates

The stamp duty rates for loan agreements in Malaysia are as follows:

– For loan agreements with a principal amount of up to RM 5,000: RM 1

– For loan agreements with a principal amount of more than RM 5,000 but less than RM 50,000: RM 5

– For loan agreements with a principal amount of RM 50,000 or more: RM 10 for every RM 1,000 or part of RM 1,000 of the principal amount, up to a maximum of RM 500

For example, if you take out a loan of RM 100,000, the stamp duty that you need to pay would be calculated as follows:

– RM 10 for every RM 1,000 of the principal amount: RM 10 x 100 = RM 1,000

– Maximum stamp duty payable: RM 500

– Total stamp duty payable: RM 500

Loan Agreement Stamp Duty Exemptions

There are certain exemptions to loan agreement stamp duty, including:

– Loan agreements between family members

– Loan agreements for educational purposes

– Loan agreements for social or charitable purposes

– Loan agreements between the government and any person or organization

– Loan agreements between Islamic financial institutions

How to Pay Loan Agreement Stamp Duty

To pay loan agreement stamp duty in Malaysia, you can either visit a Stamp Office or use the e-stamping service provided by the Inland Revenue Board (IRB). The e-stamping service allows you to pay stamp duty online using your credit card, debit card, or online banking account.

Conclusion

Loan agreement stamp duty is an important aspect of taking out a loan or lending money in Malaysia. By understanding the rates and exemptions, you can ensure that you are paying the correct amount of stamp duty and avoid any penalties or fines. If you are unsure about how much stamp duty you need to pay, consult a legal professional or visit a Stamp Office for assistance.