Exemption of stamp duty on the transfer instrument and loan contract for the purchase of dwellings worth 300.001 RM to 2,500,000 RM by Malaysian citizens under the Home Ownership Campaign 2020/2021: stamp duty is a tax levied on documents having a legal, commercial and financial effect. It would cover things like leases, land titles and even insurance policies. It`s like paying income tax for income, but now you pay taxes for a deal. However, the law gives the court the power to seize the unstamped document and to authorize the party to pay stamp duty and penalty. As a result, the party may be required to pay a stamp duty or a court penalty. See: Octville Gold Properties Sdn Bhd v Uniwheels Sdn Bhd (recipient and manager appointed)  8 MLJ 558 High Court; Public Bank Bhd v Siaw Sat Lin  1 MLJ 449 High Court But even if your agreement has no stamp, it does not mean that it is invalid. You could still take it to court, but you have to have it stamped now, and pay a small penalty for not doing it before. Once this has been done, your document will be accepted as evidence. Although the agreement was not prohibited, since it was not stamped, it does not invalidate the agreement. Further evidence could be provided to prove the existence of the loan (proof of the existence of a loan and proof of the contents of the facility agreement is a fine line of credit), such as: In short, you will be charged a penalty if you do not put your contract within 30 days of signing your contract. The penalty is indicated in Section 47A Stamp Act 1949: In the case of renter and tenant, leases are often stamped for a variety of reasons. Sometimes this can be due to inattention and sometimes to the fact that parties want to save money and avoid stamp duty.
In Alliance Bank Malaysia Bhd (formerly known as Multi Purpose Bank Bhd and Malaysia French Bank Bhd) against Mukhriz bin Mahathir – Anor  4 MLJ 451 High Court sued the borrower and defendants as part of the facility agreement. The verdict against the borrower had been obtained. Ringgit Malaysia loan contracts are generally taxed with a stamp duty of 0.5%. Arbitration is a flourishing alternative dispute resolution mechanism. Unlike the courts, arbitration is only permitted by the agreement of the parties.