Memorandum of Transfer (MOT) in Malaysia 2026: Stamp Duty and Fees
Property Lab editorial teamPublished 11 min read
Key points
- In Malaysia, MOT stamp duty for citizens and PRs is 1% on the first RM100,000, 2% to RM500,000, 3% to RM1 million and 4% above, on the higher of price or market value.
- Since 1 January 2026, non-citizens and foreign companies buying residential property in Malaysia pay a flat 8% stamp duty on the memorandum of transfer (Form 14A).
- Malaysian citizens buying a first home of up to RM500,000 pay no MOT duty on SPAs signed by 31 December 2027, and parent-child gifts are free on the first RM1 million.
Contents
- What is a memorandum of transfer (MOT) in Malaysia?
- How much is MOT stamp duty in Malaysia in 2026?
- Is there an MOT exemption for first-time home buyers?
- What stamp duty applies to a transfer between family members?
- How does an MOT get stamped and registered? Step by step
- What happens if you stamp or register the MOT late?
- What else do you pay: legal fees and land office fees?
- Documents checklist for an MOT
- Frequently Asked Questions
- References
A memorandum of transfer (MOT) in Malaysia is Form 14A under the National Land Code, the document that moves a land title from seller to buyer. Malaysian citizens and permanent residents pay MOT stamp duty of 1% to 4% in bands on the higher of the price or market value, so a RM500,000 home costs RM9,000 in duty, while non-citizens buying a home have paid a flat 8% since 1 January 2026.
MOT stamp duty is 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1,000,000 and 4% above, paid by the buyer. First-time buyers who are citizens pay nothing on homes worth up to RM500,000. The MOT must be stamped within 30 days of signing, then registered at the land office.
Key numbers (as at October 2026)
- First RM100,0001%
- RM100,001 to 500,0002%
- RM500,001 to 1m3%
- Above RM1m4%
- Non-citizens, homes8%
- Stamp within30 days
Also called: MOT, Borang 14A (Form 14A), surat cara pindah milik (instrument of transfer), duti setem (stamp duty), pindah milik secara kasih sayang (transfer by love and affection), DOA (deed of assignment), STSDS or Sistem Taksir Sendiri Duti Setem (stamp duty self-assessment system), PTG (state land and mines office).
What is a memorandum of transfer (MOT) in Malaysia?
In Malaysia, the memorandum of transfer is the Form 14A instrument that section 215 of the National Land Code requires for every transfer of alienated land, and the buyer only becomes the owner once the land office registers it.
Section 215(2) says title passes "upon the registration" of the transfer, so signing the form or paying the price is not enough on its own.
- What can be transferred: section 214 covers the whole of a piece of alienated land, an undivided share in it, a lease, a charge or a tenancy exempt from registration, but not part of a lot.
- No separate title yet: a unit still under the developer's master title is sold by a deed of assignment (DOA) of the buyer's rights, and the MOT follows once the strata or individual title is issued. Our master, strata and individual title guide explains why.
- Sarawak: MOTs there go to the Land and Survey Department, Low & Partners notes; this guide follows the National Land Code.
How much is MOT stamp duty in Malaysia in 2026?
For a Malaysian citizen or PR in 2026, MOT stamp duty is charged under Item 32(a) of the Stamp Act's First Schedule at RM1, RM2, RM3 and RM4 for every RM100 of value in four bands, on whichever is higher, the price or the market value.
LHDN's stamp duty guideline dated 30 June 2026 sets out these bands and names the buyer or transferee as the person who pays. Each band is charged per RM100 "or part thereof", so odd amounts round up, and a deed of gift or deed of assignment is charged under Item 32 too.
| Price or value (RM) | Citizen or PR (RM) | Non-citizen home (RM) |
|---|---|---|
| 300,000 | 5,000 | 24,000 |
| 500,000 | 9,000 | 40,000 |
| 800,000 | 18,000 | 64,000 |
| 1,200,000 | 32,000 | 96,000 |
MOT duty calculator: our worked examples, computed in code from LHDN's Item 32(a) and 32(ab) rates, before any exemption. Example for RM800,000: 1,000 + 8,000 + 9,000 = RM18,000. Many states set a minimum price for foreign buyers, often RM1 million (see our foreign buyer minimum price guide), so the lower rows are for comparison only.
The 8% column is Item 32(ab): residential property sold from 1 January 2026 to foreign companies or to individuals who are neither citizens nor PRs. Other property sold to them is charged a flat 4% under Item 32(aa).
Is there an MOT exemption for first-time home buyers?
Yes: a Malaysian citizen buying a first home with a market value of up to RM500,000 pays no stamp duty on the MOT or the loan agreement, for sale and purchase agreements (SPAs) signed up to 31 December 2027.
Skrine reports that P.U.(A) 448/2025 and 449/2025 extended the 2021 orders by two years. On a RM500,000 first home, the MOT saving alone is RM9,000.
Budget 2027 (9 October 2026) proposes a wider version for SPAs signed from 1 January 2027 to 31 December 2030: for first homes up to RM750,000, no duty on the first RM500,000 and 50% off the rest, The Star reported. A RM700,000 first home would then pay RM3,000 instead of RM15,000 (our calculation). As at October 2026 it is not yet law.
What stamp duty applies to a transfer between family members?
A gift of property between parent and child, or grandparent and grandchild, in Malaysia is free of stamp duty on the first RM1,000,000 of market value, with 50% off the duty on any excess, if the recipient is a Malaysian citizen and the transfer was signed on or after 1 April 2023.
The rule is P.U.(A) 178/2023, gazetted on 9 June 2023, as Skrine's June 2023 alert explains. It also covers child to parent and grandchild to grandparent, and "child" includes a step child or a legally adopted child.
| Case | Value (RM) | Duty payable (RM) |
|---|---|---|
| Parent to child | 800,000 | 0 |
| Parent to child | 1,200,000 | 4,000 |
| Husband to wife | Any | 0 |
| First home, citizen | 500,000 | 0 |
Our calculation. For RM1,200,000, the duty on the slice above RM1 million is 4% of RM200,000 = RM8,000, halved to RM4,000. The spouse row follows the PwC 2026/2027 tax booklet (below).
For spouses, the PwC 2026/2027 Malaysian Tax Booklet lists a transfer of property between husband and wife as a voluntary disposition exempt from stamp duty; law firm Chia Lee & Associates links it to a 2007 exemption order. Siblings are not in the 2023 list, and inheritance follows its own rules (see our guide to transferring property after death).
How does an MOT get stamped and registered? Step by step
An MOT in Malaysia is signed before an authorised witness, stamped through LHDN's e-Duti Setem on MyTax, then registered at the land office with the original title.
- Prepare: your conveyancing lawyer usually drafts Form 14A, PropCashflow says. Names and IC numbers must match the title, and the recipient's citizenship must be stated (Penang land office).
- Sign and attest: seller and buyer sign before a Land Administrator or a lawyer (advocate and solicitor), or abroad before a Malaysian embassy or Commonwealth notary public, says Selangor's checklist.
- Submit for stamping: within 30 days of signing. Until property transfers join self-assessment, LHDN assesses the duty and you pay within 14 days of the notice, or the period it states.
- Pay and print: pay online by FPX and print the stamp certificate, which proves stamping.
- Get consents: from the state for a restriction in interest or a non-citizen buyer, and from the bank if the land is charged.
- Register: present the stamped MOT at the land office with the registration fee. Section 301 makes "duly stamped" a condition of registration.
Under the stamp duty self-assessment system (STSDS), property transfers not involving a JPPH valuation move to self-assessment from 1 January 2027 (Phase 2): you then pay within 30 days of submitting the return and keep records for 7 years. We found no official processing time for registration.
The MOT is charged on the higher of price and market value, so a family "sale" at a token price is still dutiable on the full value unless an exemption applies.
What happens if you stamp or register the MOT late?
A late-stamped MOT in Malaysia costs a penalty of RM50 or 10% of the unpaid duty (whichever is higher) within three months after the deadline, then RM100 or 20%, under rates in force since 1 January 2025.
On RM18,000 of duty, that is RM1,800 or RM3,600 (our calculation). Registration has its own clock: under section 293, an MOT presented more than three months after its date pays a delayed fee of the registration fee times each full three months passed, capped at five times, which the registrar may waive.
What else do you pay: legal fees and land office fees?
Besides stamp duty, a buyer in Peninsular Malaysia pays the lawyer's fee under the Solicitors' Remuneration Order 2023 (SRO) plus 8% service tax, and a registration fee set by each state; our cost of buying a house guide adds up the full bill.
| Sale and transfer (RM) | SRO scale fee (RM) | Fee with 8% SST (RM) |
|---|---|---|
| 300,000 | 3,750 | 4,050 |
| 500,000 | 6,250 | 6,750 |
| 800,000 | 9,250 | 9,990 |
| 1,200,000 | 13,250 | 14,310 |
Our calculation from the SRO 2023 First Schedule (1.25% on the first RM500,000, minimum RM500; 1% on the next RM7 million), as summarised by Conventus Law. Disbursements are extra. Developer purchases use a lower Table B scale, and PropCashflow says a lawyer may discount the Table A fee by up to 25%.
- Service tax: 8% on taxable services such as legal work since 1 March 2024, Customs says.
- Registration fee, Johor: from 1 July 2025, RM3,500 for a transfer worth RM700,001 to RM800,000; from RM1 million, RM4,500 plus RM250 per extra RM50,000.
- State consent: Johor charges RM100 per title to apply for consent to transfer, under its 2019 circular.
Documents checklist for an MOT
- Original issue document of title, and certified IC copies of both parties.
- Current-year quit rent and assessment receipts.
- Original LHDN notice of assessment and stamp certificate.
- Consent letters: state authority, chargee or caveator, where needed.
- For a family transfer: birth or marriage certificates (Johor's consent checklist asks for them).
- A Tax Identification Number (TIN) for whoever files under STSDS.
Frequently Asked Questions
Who pays MOT stamp duty, the buyer or the seller?
The buyer: the Stamp Act's Third Schedule makes the purchaser or transferee liable, LHDN's guideline confirms.
How do I calculate MOT for a RM500,000 house?
Take 1% of RM100,000 (RM1,000) and add 2% of the next RM400,000 (RM8,000). The total is RM9,000, or nil if you qualify for the first-home exemption.
Is MOT the same as the SPA?
No. The SPA is the contract to buy, stamped at a fixed RM10 in a normal sale, while the MOT is the land office form that actually moves the title.
Do I pay full MOT duty again when my strata title is issued?
Usually not. Once full duty has been paid on an earlier document, such as a stamped deed of assignment, LHDN's guideline charges RM10 under Item 32(i) on the later legal transfer; your lawyer can confirm.
Can I transfer my house to my wife without stamp duty?
Yes, when it is a gift. PwC's current tax booklet lists a husband-to-wife transfer made as a voluntary disposition as exempt from stamp duty. Your lawyer will check this for your title.
How long do I have to stamp the MOT?
Thirty days from signing, or from the day it first reaches Malaysia if signed overseas; penalties start after that.
Is the 2027 first-home stamp duty exemption already in force?
No. The RM750,000 version is a Budget 2027 proposal awaiting a gazetted order, so check before you sign an SPA.
References
- LHDN: Garis Panduan Pengenaan Duti Setem bagi Surat Cara yang Tertakluk kepada Jadual Pertama Akta Setem 1949 (30 June 2026, PDF)Used for the Item 32(a), 32(aa) and 32(ab) rates, higher of price or market value, per RM100 or part, the buyer paying, Item 32(i) RM10 and the list of Item 32 documents.
- LHDN: Stamp Duty Self-Assessment System (STSDS) (updated 28 August 2026)Used for the phases, Phase 2 from 1 January 2027 and the TIN and seven-year record rules.
- LHDN: Garis Panduan Operasi Permohonan Penyeteman melalui STSDS (PDF)Used for the 30-day stamping period, formal assessment with payment within 14 days, and payment within 30 days under self-assessment.
- LHDN: Penalty (Stamp Duty) (updated 13 May 2026)Used for the 30-day deadline and the late stamping penalties from 1 January 2025.
- LHDN: Stamping MethodUsed for the stamp certificate.
- LHDN: Responsibility of SolicitorsUsed for online payment by FPX.
- National Land Code, section 215 (LawPlayer, from AGC)Used for Form 14A and title passing on registration. Sections 206, 214, 293 and 301 were used for registration, what can be transferred, delayed registration fees and the stamping condition.
- PTG Selangor: Senarai Semak Urusniaga Pindahmilik Tanah, Borang 14A (PDF)Used for witnesses, documents and consents.
- PTG Pulau Pinang: Senarai Semak Pindah Milik Borang 14A (March 2015, PDF)Used for name, IC and citizenship checks and execution by both parties.
- PTG Johor: Pekeliling Bil. 3 Tahun 2025 (PDF)Used for Johor's transfer registration fees from 1 July 2025.
- PTG Johor: Senarai Semak Permohonan Kebenaran Pindahmilik Tanah (2026, PDF)Used for the RM100 per title consent application fee and the birth and marriage certificates for family transfers.
- Skrine: Stamp duty exemption for transfer of property between parent and child and grandparent and grandchild gazetted (June 2023)Used for P.U.(A) 178/2023, its table of family members, citizenship rule and definition of child.
- Ministry of Finance: Pengecualian duti setem bagi pemilikan rumah pertama dan pindah milik harta tanah secara kasih sayang (9 June 2023)Used to confirm the RM1 million exemption and 50% remission from 1 April 2023.
- Skrine: Five stamp duty exemption orders extended (2 January 2026)Used for the first-home exemption to 31 December 2027.
- The Star: Budget 2027, govt proposes stamp duty exemptions for first-time homebuyers (9 October 2026)Used for the proposed 2027-2030 first-home exemption.
- Chia Lee & Associates: Stamp duty for transfer of propertyUsed for the 2007 order behind the spouse exemption (undated page).
- PwC: 2026/2027 Malaysian Tax Booklet, stamp dutyUsed for the husband-and-wife transfer exemption.
- Conventus Law: The Solicitors' Remuneration Order 2023 (September 2023)Used for the sale and transfer scale fee.
- Royal Malaysian Customs Department: Guide on Management Services (6 May 2026, PDF)Used for the 8% service tax rate from 1 March 2024.
- Royal Malaysian Customs Department: Guide on Professional Services (PDF)Used for legal services being a taxable service.
- PropCashflow: What is MOT in property? (July 2026)Used for the lawyer preparing and lodging the MOT, the deed of assignment route, the fixed RM10 SPA duty and the 25% discount.
- Low & Partners: Memorandum of Transfer (Sarawak)Used for registration at the Land and Survey Department, Sarawak.
Check LHDN's stamp duty pages and your state land office for the latest rates, forms and fees before you sign.
General information only, not legal, tax or financial advice. Ask a conveyancing lawyer to confirm the duty, exemptions and fees for your own transfer.
Sources
- Garis Panduan Pengenaan Duti Setem bagi Surat Cara yang Tertakluk kepada Jadual Pertama Akta Setem 1949 (30 Jun 2026) — Inland Revenue Board of Malaysia (LHDN)
- Stamp Duty Self-Assessment System (STSDS) — Inland Revenue Board of Malaysia (LHDN)
- Penalty (Stamp Duty) — Inland Revenue Board of Malaysia (LHDN)
- National Land Code, section 215: Form, and effect generally, of transfer of land — LawPlayer (from the Attorney General's Chambers)
- Stamp duty exemption for transfer of property between parent and child and grandparent and grandchild gazetted — Skrine
- Five stamp duty exemption orders extended — Skrine
General information only, not legal, tax or investment advice. Rules and rates change; check the official source linked below before you act.
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