How much is stamp duty on a share transfer in Malaysia?
Stamp duty on a share transfer is RM3 per RM1,000 (0.3%) under Item 32(b) of the Stamp Act 1949, on the higher of the price and the value of the shares on the transfer date. For unlisted shares LHDN's guideline values shares by net tangible assets or a price-earning multiple, or par value for loss-making companies. The instrument must be presented for stamping within 30 days of signing.
Rate. The share transfer instrument is charged at 0.3% (RM3 per RM1,000 or part) under Item 32(b) of the First Schedule.
Base. The duty is computed on the higher of the price and the value of the shares on the date of transfer.
Valuing unlisted shares. LHDN's guideline for companies not listed on Bursa uses these steps:
- If the transfer needs Securities Commission approval, the approved price may be accepted.
- For a loss-making company, the higher of par value, net tangible assets (NTA) per share or the consideration is used. NTA per share is shareholders' funds (total assets less total liabilities) divided by issued share capital.
- Otherwise, the highest of NTA per share, a price-earning-based value (after-tax profit multiplied by a sector multiple, divided by issued shares) and the consideration is used.
Example (illustrative). A company with NTA of RM1,000,000 and 100,000 shares: selling 50,000 shares for RM50,000 gives an NTA-based value of RM500,000. Duty is 0.3% of RM500,000, which is RM1,500, not 0.3% of RM50,000.
Deadline. An instrument signed in Malaysia must be presented for stamping within 30 days of signing (s.47). Late stamping adds the greater of RM25 or 5% of the duty if within three months after the deadline, RM50 or 10% from three to six months, and RM100 or 20% after that (s.47A).
Transfers between related parties may qualify for different treatment, so ask LHDN. Stamping is separate from notifying SSM of the shareholder change.
Legal basis
- Stamp Act 1949, First Schedule, Item 32(b)
- Stamp Act 1949, ss.47 and 47A
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
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