Description
- LHDN Agreement Stamping refers to the process of paying stamp duty and officially stamping legal agreements or contracts to make them valid and enforceable under Malaysian law. This process is managed by the Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri Malaysia – LHDN).
GOV Department
- Lembaga Hasil Dalam Negeri Malaysia (LHDN)
License Name (Malay)
- Pemeteraian Perjanjian LHDN
Details
- Agreement stamping is required for legal documents such as tenancy agreements, sales and purchase agreements, loan agreements, and partnership contracts.
- The stamp duty amount depends on the type and value of the agreement.
- Agreements must be stamped within 30 days from the date of signing to avoid penalties.
- Stamping can be done at LHDN counters or through the STAMP Assessment and Payment System (STAMPS) online portal.
Important Rules
- All agreements involving financial value must be stamped as per the Stamp Act 1949.
- Late stamping will incur a penalty.
- Stamped agreements serve as legal proof in court during disputes.
- Both parties are responsible for ensuring the agreement is stamped before it takes effect.
Compound & Punishment
- Failure to stamp agreements can result in:
- Penalties: A fine of up to RM25 or 5% of the unpaid stamp duty (whichever is higher).
- For delays over 3 months, penalties can increase to 20% of the unpaid stamp duty.
- Unstamped agreements may be inadmissible as evidence in court.
Advisor
Penny Lim , Legal Consulting
Ms. Penny is responsible for identifying possible legal issues and implementing solutions in the areas of government regulation, customer protection, and fair employment. Legal Counsel. Ms. Penny can advise on legal issues such as government and business permits, review legal documents before signing them, and complete legal research as needed by the company