Stamp duty is like printing money in some sense to the government.
Take an ordinary white A4 size paper, print some words on it, put some values to it, get some signatures on it and don't forget to date it as well.
Take it to your nearest Lembaga Hasil Dalam Negeri ("LHDN") stamp duty branch, fill up the PDS 1 form, take your no., wait for your turn, here comes your turn, give to the assessment officer, he assessed it, write down the value, you pay the amount, they pass it to the franking machine dude, dude set the correct amount on the machine, zap ! ran your document through the machine, with a red pattern imprinted on your paper, its done.
Stamp duty assessment covers quite a bit, but just look at the usual ones. Which are your rental agreement, properties and loans.
Basically there would be a value “x” and the multiplier “y”.
The multiplier depends on the number of years the rental agreement is for.
RM1.00 for rental less than 1 year
RM2.00 for rental 1-3 years
RM3.00 for rental more than 3 years
For total rental less than RM2,400 per annum, the stamp duty is RM0.00.
Otherwise it follows this simple formula.
Total rental per annum less RM2,400.
Divide the balance with RM250.
This will give you a “x” value.
Multiply “x” with the above multiplier condition.
Round it up.
e.g.1 Rental at RM3,570 per month for 2 years.
Annual rental would come to RM42,840
Less RM42,840 with RM2,400,
then divide with RM250,
giving you RM161.76,
multiply this with RM2.00, you will get RM323.52,
rounded up is RM324.00.
PURCHASE OF PROPERTY
Legal fees are like 1% of the value of your property, which you can ask for discount, but the stamp duty are on cash basis.
Stamp duties on properties are really freaking expensive.
1st RM100,000 of the value of the property – 1%
The next RM400,000 of the value of the property – 2%
In excess of RM500,000 of the value of the property – 3%
e.g.2 You bought a property for RM315,000
1st RM100,000 = RM1,000
Next RM215,000 = RM4,300
Total RM315,000 = RM5,300
e.g.3 You bought a property for RM550,000
1st RM100,000 = RM1,000
Next RM400,000 = RM8,000
Last RM50,000 = RM1,500
Total RM550,000 = RM9,900
I do believe most eligible folks will be able to borrow up to 30-35 years but not exceeding 65 years of age, at 36, the bank gave me a 29 years loan only.
Just multiply any amount with 0.5%
The above example.
- 90% of RM315,000 = RM283,500 x 0.5% = RM1,417.50- 90% of RM550,000 = RM495,000 x 0.5% = RM2,475.00