MOT stands for Memorandum of Transfer.

MOT stamp duty is the stamp duty payable on the transfer of ownership of a property from the seller to the buyer.

In Malaysia, the amount generally depends on the property's relevant value and the applicable stamp duty rates.

What the Memorandum of Transfer actually is

The MOT is the legal instrument that moves the title from the seller's name into yours. It is the document that makes you the registered owner, and stamp duty is the tax charged on stamping that document. Until it is stamped and registered, the transfer is not complete regardless of what the sale and purchase agreement says.

How the rates are structured

MOT stamp duty is progressive. Each rate applies only to the portion of the value that falls within its band, not to the whole amount:

  • 1% on the first RM100,000

  • 2% on the next RM400,000 — the portion from RM100,001 to RM500,000

  • 3% on the next RM500,000 — the portion from RM500,001 to RM1,000,000

  • 4% on any amount above RM1,000,000

This is worth understanding because it is commonly misread. A RM600,000 property does not attract 3% across the board. It attracts 1% on the first RM100,000, 2% on the next RM400,000 and 3% only on the final RM100,000 — RM12,000 in total, rather than the RM18,000 a flat 3% would produce.

Which value the duty is charged on

Duty is assessed on the property's relevant value for stamp duty purposes. For a normal arm's-length sale this is the purchase price. Where the assessed market value is higher than the agreed price — which can arise in sub-sales, related-party transfers or below-market deals — the higher figure is the one that applies.

Who handles it

In practice your conveyancing solicitor prepares the MOT, arranges stamping and handles the submission. Stamping is time-sensitive, so the duty is usually payable early in the transaction rather than at completion. Your solicitor will tell you when the funds are needed.

Please note: the rates above are provided as general guidance and are not tax or legal advice. Stamp duty rates, exemptions and treatment are set by the government and may change. Confirm your figures with your solicitor or with LHDN before relying on them.