Stamp Duty Redefined: Key Changes And Implications Under The Finance Act 2024

Introduction

Stamp duty has long been the quiet backdrop of Malaysia's tax system, often overlooked unless when property transactions occurred, or disputes arose in court. However, the Finance Act 2024 ("Finance Act") marks a significant turning point. The Inland Revenue Board ("IRB") is poised to enforce stricter compliance measures, introducing a self-assessment regime that places taxpayers at the centre of a more transparent and demanding system.

Background and the Reason for Amendment

It is pertinent to note that stamp duty is levied on all instruments, including handwritten, printed, or electronic documents that meet the definitions under the Stamp Act 1949 ("Stamp Act").¹ The liability for duty arises when an instrument falls under the First Schedule of the Act.² In simpler terms, these instruments can include agreements, contracts, deeds, licenses, and other written documents specified by law. The purpose of stamp duty is to authenticate