Akta Setem 1949
Applies to: Federal Act — see s 1 (Short title and application) · Official text ↗
- Defines key terms such as 'banker', 'bond', 'charge' and 'cheque' (s 2)
- Specifies that instruments listed in the First Schedule are chargeable with duty (s 4(1)).
- Outlines methods for paying duty, including affixing receipts or digital stamping (s 7(1)).
- Determines who must bear the expense of stamp duty based on the type of instrument (s 33).
- Allows an appeal to the High Court against the Collector's decision on an objection (s 39(1))
- Requires instruments executed in Malaysia to be stamped before or at execution (s 41).
- Sets penalties for late stamping and for executing unstamped documents (s 47A, s 63).
- Declares that unstamped instruments are inadmissible in evidence unless duty and penalties are paid (s 52(1)).
What this law is
The Stamp Act 1949 (Akta Setem 1949) is numbered Act 378 in the Laws of Malaysia. Where it applies is set out in section 1 (Short title and application).
Its long title, as printed in the official text: An Act relating to stamp duties.
Read every section, the amendment history and the official copy on our law library page for this Act.
How the Act is arranged
- Part I — Preliminary (ss 1–3A)
- Part II — Provisions applicable to instruments generally (ss 4–14A)
- Part III — Provisions applicable to particular instruments (ss 15–32A)
- Part IV — Liability for payment of duty (ss 33–35B)
- Part V — Adjudication as to stamps (ss 36–40)
- Part VI — Of the time of stamping instruments (ss 41–50B)
- Part VII — Instruments not duly stamped (ss 51–56)
- Part VIII — Allowance for spoiled stamps (ss 57–59A)
- Part IX — Offences and penalties (ss 60–75)
- Part X — Miscellaneous (ss 76–83)
Part titles are from the official arrangement of sections.
Time limits in this Act
| What | Limit | Section |
|---|---|---|
| Time to stamp instrument after assessment by Collector | thirty days from the date of the assessment | s 36(2)(a)(ii) |
| Time to file appeal to High Court | twenty-one days after the person is notified in writing | s 39(1) |
| Time to set down case for hearing after Collector states and signs it | seven days thereafter | s 39(2) |
| Period for reduced penalty for late stamping | within three months after the time for stamping | s 47A(1)(a) |
Offences and penalties
| Offence | Penalty (as written in the Act) | Section |
|---|---|---|
| Late stamping of an instrument | fifty ringgit or ten per centum of the amount of the deficient duty, whichever sum be the greater | s 47A(1)(a) |
| Late stamping of an instrument (beyond three months) | one hundred ringgit or twenty per centum of the amount of the deficient duty, whichever sum be the greater | s 47A(1)(b) |
| Drawing, making, executing or signing an unstamped instrument with intent to evade duty | a fine of not less than one thousand ringgit and not exceeding ten thousand ringgit | s 63(1) |
| Fraudulent act with intent to defraud the Government of duty | a fine of not less than one thousand ringgit and not more than twenty thousand ringgit | s 74 |
Laws cited on this page
| Act 378 | Stamp Act 1949 Akta Setem 1949 | PDF · Official ↗ |
Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 1 | The Act applies throughout Malaysia and is cited as the Stamp Act 1949. |
| s 2 | Defines terms used in the Act, such as 'banker', 'bond', 'charge', 'cheque' and 'Collector'. |
| s 4 | Instruments specified in the First Schedule are chargeable with duty, and if multiple instruments are used for one transaction, only the principal one attracts the full duty while others attract a fixed ten ringgit duty. |
| s 7 | Duty must be paid and indicated on the instrument by affixing an official receipt, attaching a stamp certificate, or using digital stamping. |
| s 33 | The person who draws, makes, or executes the instrument generally bears the cost of stamp duty, unless the Third Schedule specifies otherwise. |
| s 36 | The Collector assesses duty based on returns furnished with instruments, and the instrument must be stamped within thirty days of the assessment. |
| s 39 | A person dissatisfied with the Collector's decision under s 38A(5) may, within twenty-one days after being notified of it in writing and on paying the duty in conformity with it, appeal to the High Court. |
| s 41 | All instruments chargeable with duty and executed in Malaysia must be stamped before or at the time of execution. |
| s 47A | Late-stamped instruments incur a penalty of fifty ringgit or ten per centum of the deficient duty (whichever is greater) if stamped within three months, or one hundred ringgit or twenty per centum (whichever is greater) otherwise. |
| s 52 | Instruments chargeable with duty are inadmissible in evidence unless duly stamped, though they may be admitted upon payment of duty and any applicable penalty. |
| s 63 | Anyone who draws, makes, or executes an unstamped instrument with intent to evade duty, or fails to procure stamping within the penalty-free period, is liable to a fine of not less than one thousand ringgit and not exceeding ten thousand ringgit. |
| s 74 | Practising fraudulent acts with intent to defraud the Government of duty is an offence punishable by a fine of not less than one thousand ringgit and not more than twenty thousand ringgit. |
Worked examples
Facts. Ahmad signs a tenancy agreement in Kuala Lumpur but does not get it stamped until well over three months after the time allowed for stamping it.
The law. Instruments chargeable with duty executed in Malaysia must be stamped before or at the time of execution, unless the Act provides otherwise (s 41). An instrument not stamped within the period allowed may still be stamped on payment of the unpaid duty and a penalty (s 47A(1)).
Outcome. Because it is more than three months late, the penalty is RM100 or 20% of the deficient duty, whichever is greater (s 47A(1)(b)); the Collector may reduce or remit the penalty (s 47A(2)).
Facts. Siti objected to the duty assessed on her property transfer document, and the Collector notified her in writing of his decision on the objection.
The law. A person dissatisfied with the Collector's decision under s 38A(5) may appeal to the High Court within twenty-one days after being notified in writing, upon payment of the duty in conformity with the decision (s 39(1)).
Outcome. Siti must pay the duty as decided and file her appeal within twenty-one days of being notified (s 39(1)).
Facts. Ravi tries to present a service agreement in a civil court to prove a debt. The document has never been stamped.
The law. Under s 52(1), no instrument chargeable with duty shall be admitted in evidence unless duly stamped. However, it may be admitted upon payment of duty and any penalty under s 47A.
Outcome. The court will not admit the evidence until Ravi pays the required stamp duty and any applicable penalty for late stamping (s 52(1)(a)).
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
Who has to pay the stamp duty?
Generally, the person who draws, makes, or executes the instrument must bear the expense (s 33(b)). However, for specific instruments listed in the Third Schedule, the person mentioned in the second column of that Schedule must pay (s 33(a)).
What happens if I forget to stamp my document?
If you stamp it late, you must pay the unpaid duty plus a penalty (s 47A(1)). The penalty is fifty ringgit or ten per centum of the deficient duty if stamped within three months, or one hundred ringgit or twenty per centum if later (s 47A(1)).
Can I use an unstamped document in court?
No, an instrument chargeable with duty cannot be admitted in evidence unless it is duly stamped (s 52(1)). You can admit it by paying the duty and any penalty, but it is not admissible otherwise (s 52(1)(a)).
How do I appeal if I think the Collector assessed too much duty?
An appeal to the High Court lies against the Collector's decision under s 38A(5). It must be brought within twenty-one days after you are notified of that decision in writing, and only on payment of the duty in conformity with it (s 39(1)). If the Court finds the assessment erroneous, excess duty paid is ordered to be repaid (s 39(4)).
Does this Act apply to documents signed outside Malaysia?
Yes, if the document relates to property in Malaysia or matters done in Malaysia, it must be duly stamped according to the law in force in that part of Malaysia (s 52(2)).
What is the penalty for fraudulently evading stamp duty?
Any person who practises fraudulent acts with intent to defraud the Government of duty is liable to a fine of not less than one thousand ringgit and not more than twenty thousand ringgit (s 74).
All questions & answers → · Ask your own →
Sources
Related
Renting and buying propertyContracts Act 1950Evidence Act 1950