When a property is transferred, the transferee must pay Stamp Duty. The Stamp Duty is based on the price for the property or its market value, whichever is the higher.

This is provided for under the First Schedule to the Stamp Act, 1949 (as amended). The duty is calculated as follows:

1% for the first RM100,000
2% for the next RM400,000, and
3% for the remaining balance

(This amendment is effective from 1 January 2001)

The authority for the administration, computation and collection of the duty is the Inland Revenue Board (IRB).