Stamp Duty for S&P Agreement: What You Need to Know
When it comes to buying or selling property in Malaysia, there are various costs involved in the process. One of these costs is the stamp duty for S&P agreement, which is also known as the Memorandum of Transfer (MOT) fee. This fee is legally required by the government and must be paid by both the buyer and the seller.
What is S&P agreement?
The Sales and Purchase (S&P) agreement is a legal document that outlines the terms and conditions of the property sale. It includes details such as the agreed price, the payment schedule, and any other terms and conditions that the parties have agreed upon. This agreement is typically prepared by a lawyer and signed by both the buyer and the seller.
What is stamp duty?
Stamp duty is a type of tax that is levied on certain legal documents. In Malaysia, stamp duty is regulated by the Stamp Act 1949. It is payable by the person who executes the document or in the case of a property sale, by both the buyer and the seller.
What is the stamp duty for S&P agreement?
The stamp duty for S&P agreement is a fee charged for the transfer of property ownership. In Malaysia, this fee is calculated based on the property value as determined by the Valuation and Property Services Department (JPPH). The stamp duty for S&P agreement is 1% for the first RM100,000 of the property value, 2% for the next RM400,000, and 3% for any amount exceeding RM500,000.
Who pays the stamp duty for S&P agreement?
Both the buyer and the seller are required to pay the stamp duty for S&P agreement. The amount payable by each party is based on their share of the property value. For example, if the agreed sale price is RM500,000 and the buyer and seller agreed to a 50/50 split, then each party will pay RM5,000 in stamp duty.
When is the stamp duty for S&P agreement payable?
The stamp duty for S&P agreement must be paid within 30 days of the signing of the S&P agreement. Failure to do so may result in penalties and fines.
How is the stamp duty for S&P agreement paid?
The stamp duty for S&P agreement can be paid at any Stamp Office or through the Malaysian Inland Revenue Board (LHDN) website. Payment can be made by cash, cheque, or bank draft.
In conclusion, the stamp duty for S&P agreement is an important cost to consider when buying or selling property in Malaysia. It is important to ensure that this fee is paid within the stipulated time frame to avoid any penalties or fines. It is also advisable to consult a lawyer or a property agent to ensure that all legal procedures are properly followed.