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FAQs on the processing fee for the indorsement of instruments exempted from stamp duty
Pursuant to the Finance Act 2021, effective from 1 January 2022 Section 37(2A) was introduced into the Stamp Act 1949 to provide that a processing fee of RM10 will be imposed for a Collector to certify by indorsement that an instrument is exempted from stamp duty. The fee will apply if the instrument would have been chargeable with duty exceeding RM10, had it not been exempted from stamp duty.
Following the above, the IRB has published on its website an FAQs document dated 2 January 2022, in Bahasa Malaysia, titled “Soalan Lazim Berkaitan Pelaksanaan Fi Pemprosesan RM10.00 Ke Atas Semua Surat Cara Yang Tidak Dikenakan Duti Setem (Fi Pemprosesan)”.
Some of the key points are outlined below:
The fee applies to all instruments exempted from stamp duty (i.e., it is not restricted to specific types of instruments or applications)
The fee is not imposed on subsidiary instruments
The fee can be remitted by way of cash, bank draft, client’s check or online payment. Revenue stamps cannot be used for the fee payment.
The fee applies to stamping applications submitted from 3 January 2022