How Much Stamp Duty for Transfer of Property From Parent to Child in Malaysia (2026): Exemptions, MOT vs Deed of Gift and SDSAS Steps

If you are wondering how much stamp duty for transfer of property from parent to child in Malaysia, the short answer in 2026 is significantly less than the standard rate, and for properties valued at RM1,000,000 or below, the answer may be zero. A Stamp Duty (Exemption) Order gazetted following Budget 2023 grants a full exemption on the first RM1,000,000 of market value for instruments of transfer executed by way of natural love and affection between parents and children, provided the recipient is a Malaysian citizen. For property values exceeding that threshold, a 50% remission applies to the duty calculated on the balance.

Coupled with the mandatory rollout of the Stamp Duty Self-Assessment System (SDSAS) via LHDN’s e‑Duti Setem portal on MyTax from 1 January 2026, the filing process itself has also changed, taxpayers (or their solicitors) must now self-calculate, declare and pay duty online before presenting the instrument for land office registration.

How Much Stamp Duty for a Parent to Child Property Transfer, Quick Calculation

Before examining eligibility rules and procedural steps, it helps to see the actual numbers. The standard ad valorem stamp duty rates on instruments of transfer under the First Schedule of the Stamp Act 1949 (Act 378) are tiered based on the property’s market value or consideration, whichever is higher. However, when the transfer qualifies as a love and affection transfer of property in Malaysia between parent and child, those rates are modified by the gazetted exemption and remission.

Standard Stamp Duty Rates (Instruments of Transfer)

How the Love and Affection Exemption Applies

Under the Stamp Duty (Exemption) Order, the first RM1,000,000 of the property’s market value is fully exempt from stamp duty. Any duty chargeable on the amount exceeding RM1,000,000 receives a 50% remission. The net effect is that a parent to child property transfer in Malaysia carries a dramatically reduced, or even nil, stamp duty liability.

Worked Example 1, Property Valued at RM800,000

Because the market value falls entirely within the first RM1,000,000, the full exemption applies. No stamp duty is payable.

Worked Example 2, Property Valued at RM1,500,000

The first RM1,000,000 is exempt. Standard rates apply to the remaining RM500,000, but the resulting duty then qualifies for a 50% remission.

Without the exemption, a standard buyer of the same RM1,500,000 property would pay RM25,000 in stamp duty. The love and affection concession therefore saves RM17,500 in this scenario. For a detailed overview of all Malaysia stamp duty changes 2026, conveyancing, see our companion guide.

Love and Affection Stamp Duty Exemption Malaysia 2026, Eligibility and Statutory Basis

Who Qualifies

The exemption under the gazetted P.U. order applies to instruments of transfer executed by way of natural love and affection between specified categories of family members. For parent-to-child (and child-to-parent) transfers, the key eligibility criteria are:

• Relationship. The transferor and transferee must be parent and child, including adoptive parents and legally adopted children.
• Citizenship. The transferee (recipient) must be a Malaysian citizen. Where a child holds dual nationality or is a permanent resident but not a citizen, the exemption does not apply.
• Nature of instrument. The instrument must be executed “by way of natural love and affection”, this is typically stated expressly on the face of the Memorandum of Transfer (Form 14A) or deed of gift. A transfer that recites monetary consideration rather than love and affection will not qualify.

Scope and Limits

The stamp duty exemption Malaysia 2026 framework for love and affection transfers operates in two tiers. The first RM1,000,000 of the property’s market value (as determined by LHDN or the Valuation and Property Services Department, JPPH) is completely exempt. On any value above RM1,000,000, the standard ad valorem duty is calculated and then a 50% remission is granted on that figure. This structure was announced in the Budget 2023 speech by the Ministry of Finance and implemented through a gazetted Stamp Duty (Exemption) Order effective from 1 April 2023. The exemption remains in force and applies to all qualifying instruments presented for stamping in 2026 under the SDSAS regime.

It is important to note that “market value” means the value as assessed by the authorities, not the consideration stated on the instrument (which is typically nominal or nil for a gift). If LHDN’s valuation exceeds RM1,000,000, duty on the excess will apply even though no money changes hands.

MOT vs Deed of Gift, Which to Use for a Parent to Child Property Transfer in Malaysia

One of the most common practical questions in a love and affection transfer of property in Malaysia is whether to use a Memorandum of Transfer (Form 14A) or a deed of gift. Both instruments can qualify for the stamp duty exemption, but they differ in registration procedure, lender treatment and practical implications.

What Is a Memorandum of Transfer (Form 14A)?

The MOT, prescribed as Form 14A under the National Land Code 1965, is the standard instrument used to register a change of ownership at the relevant land office or land registry. It is used for both sale-and-purchase transactions and family transfers. For a love and affection transfer, the consideration field on the form is stated as “natural love and affection” rather than a monetary amount. The form must be stamped (or stamp-exempt) before the land office will register the transfer. For a full walkthrough of the Form 14A process, see how to transfer house ownership in Malaysia (Form 14A guide).

What Is a Deed of Gift?

A deed of gift is a separate legal instrument documenting the voluntary transfer of property without consideration. In Malaysia, a deed of gift alone does not effect registration at the land office, a Form 14A must still be lodged. However, some families execute a deed of gift for evidentiary or estate-planning purposes (for example, to clearly record the donor’s intent) and then present the accompanying MOT for registration. The deed of gift Malaysia route is particularly common when property is given as part of a broader family arrangement involving multiple assets.

Comparison Table, MOT vs Deed of Gift

Industry observers note that in the vast majority of parent-to-child transfers, the recommended route is to execute a single Form 14A stating “natural love and affection” as the consideration, stamped through e‑Duti Setem with the exemption claimed. A separate deed of gift adds documentary complexity without a corresponding registration advantage. Where a deed of gift is used alongside the MOT, both instruments may need to be stamped, though the duty chargeable on the deed of gift is typically nominal. For a broader overview, see our guide on how to transfer property in Malaysia, full guide.

SDSAS / e‑Duti Setem, Step-by-Step Self-Assessment and Filing

From 1 January 2026, the Stamp Duty Self-Assessment System (SDSAS) replaced the previous adjudication-based stamping process. All stamp duty on instruments, including love and affection transfers, must now be self-assessed and filed through LHDN’s e‑Duti Setem portal on MyTax. This shift places the obligation to correctly calculate, declare and pay duty squarely on the taxpayer or their appointed solicitor.

What Changed with SDSAS

Under the old system, instruments were physically submitted to LHDN’s stamp office, which adjudicated the duty payable. Under SDSAS, the process is online and self-service. The taxpayer (or solicitor acting on their behalf) logs in to MyTax, calculates the duty based on the applicable rates and exemptions, uploads the instrument, pays any duty owing, and receives a digital stamp certificate. LHDN retains the right to audit self-assessed returns and may reassess within a prescribed period.

Pre-Filing Checklist

Before starting the SDSAS e‑Duti Setem filing, gather the following:

• Tax Identification Number (TIN) and MyTax login credentials for both transferor and transferee.
• Market value evidence, a recent valuation report from a registered valuer, or the JPPH e-valuation reference. LHDN will reference JPPH’s database when auditing your self-assessed figure.
• Scanned copy of the executed instrument (Form 14A / MOT or deed of gift) in PDF format.
• Identity documents, MyKad (for Malaysian citizen recipient) and relationship evidence (birth certificate or adoption order).
• Supporting documents for exemption claim, statutory declaration of relationship if not evident from identity documents.

Step 1, Calculate the Duty

Apply the standard tiered rates from the First Schedule of the Stamp Act 1949 to the property’s market value. Then apply the love and affection concessions: exempt the first RM1,000,000, calculate duty on any remainder, and reduce that duty by 50%. Use the worked examples above as a template. If the market value is RM1,000,000 or below, your self-assessed duty is RM0. Record your calculation, LHDN may request the working papers during an audit.

Step 2, Submit on e‑Duti Setem (MyTax)

1. Log in to MyTax (mytax.hasil.gov.my) using your TIN and password.
2. Navigate to e‑Duti Setem from the main services menu.
3. Select “New Application” and choose the instrument type (transfer / conveyance).
4. Enter the property details, title reference, lot number, land area, and address.
5. Enter the market value and the consideration (state “natural love and affection”).
6. Declare the exemption claim, select the relevant exemption order and upload supporting evidence (MyKad copy, birth certificate, relationship statutory declaration).
7. Upload the scanned instrument (PDF of the executed Form 14A).
8. The system will display the self-assessed duty payable. If RM0 (fully within the RM1m exemption), confirm and submit. If a balance is due, proceed to payment via FPX or other approved online channels.
9. Upon successful submission and payment (if applicable), the system generates a digital stamp certificate (Sijil Setem) which must be attached to the instrument.

For a comprehensive walkthrough of the SDSAS portal and recent changes, see our guide on Malaysia stamp duty changes 2026, conveyancing.

Step 3, Claiming the Exemption and Supporting Evidence

When claiming the love and affection exemption through e‑Duti Setem, LHDN expects the following supporting documents to be uploaded:

• Transferee’s MyKad, proving Malaysian citizenship.
• Birth certificate of the transferee, proving the parent-child relationship.
• Adoption order (if applicable), where the transferee is a legally adopted child.
• Statutory declaration, if relationship evidence is unclear or names on documents differ.

The instrument must be submitted for stamping within 30 days of execution (for instruments executed in Malaysia). Late stamping attracts penalties under Section 47A of the Stamp Act 1949. Under the SDSAS framework, LHDN has published operational guidelines confirming the audit and voluntary disclosure procedures for self-assessed returns.

Post-Filing, Stamp Certificate and Land Office Registration

Once the digital stamp certificate is issued, the stamped instrument (Form 14A with the attached Sijil Setem) is presented to the relevant state land office or land registry for registration of the transfer. The land office will process the change of ownership upon receipt of the stamped MOT, applicable land office registration fees, and (where necessary) state authority consent.

Lender Consent, Outstanding Mortgage and State Consent for Leasehold Property

Many parent-to-child transfers involve properties that are still subject to an existing bank loan (charge). This creates practical complications that must be resolved before the stamp duty filing and land office registration can proceed.

If the Property Has an Outstanding Charge

When a property is charged to a bank (i.e., there is an existing mortgage), the bank’s consent is required before any transfer can be registered. Practically, this means:

• Full redemption. The loan is paid off, the bank issues a discharge of charge (Form 16N), and the property is transferred free of encumbrance. This is the cleanest route.
• Loan novation or substitution. The child takes over the loan (subject to the bank’s credit approval), a new charge is registered in the child’s name, and the transfer proceeds simultaneously. The bank will charge legal and administrative fees for this process.
• Bank consent letter. In some cases, the bank may consent to the transfer without full redemption, provided the child joins as co-borrower or provides additional security. This is less common and bank-dependent.

Solicitors should obtain the bank’s redemption statement early in the process, as bank processing times can add four to eight weeks to the overall timeline.

Leasehold State Consent

For leasehold properties, a transfer requires the consent of the relevant State Authority (Pihak Berkuasa Negeri). This consent is applied for at the state land office and involves additional fees and processing time. Key points for leasehold state consent in Malaysia include:

• Application fee. Varies by state, typically a few hundred ringgit, but some states charge a percentage of the property value.
• Processing time. State consent can take one to six months depending on the state and backlog.
• Foreign recipient restrictions. Some states impose additional conditions or restrictions on transfers to non-citizens, even for family transfers. Since the stamp duty exemption already requires the recipient to be a Malaysian citizen, this is less likely to arise in parent-to-child transfers, but it is relevant where a parent is transferring to a child who may have renounced Malaysian citizenship.

Freehold properties do not require state consent, making the transfer process faster and simpler. For either tenure type, see our general guide on stamp duty and conveyancing in Malaysia (overview).

Practical Checklist, Required Forms and Timeline

Document Checklist

• Executed Form 14A (Memorandum of Transfer), stating “natural love and affection” as consideration
• Transferee’s MyKad (identity card proving citizenship)
• Birth certificate or adoption order proving parent-child relationship
• Property valuation, recent valuation or JPPH reference
• SDSAS e‑Duti Setem printout, digital stamp certificate (Sijil Setem)
• Bank redemption statement / discharge of charge (Form 16N), if mortgage exists
• State consent application, for leasehold property
• Land office registration fees, payable upon presentation

Typical Timeline

Key Legislative and Administrative Dates

Conclusion

Understanding how much stamp duty for transfer of property from parent to child in Malaysia comes down to three things: confirming the property’s market value, verifying that the recipient is a Malaysian citizen, and correctly applying the love and affection exemption through the SDSAS e‑Duti Setem portal. For properties valued at RM1,000,000 or less, the stamp duty is nil. For higher-value properties, the combination of the RM1,000,000 exemption and 50% remission produces substantial savings compared with a standard purchase. Practical complications, outstanding mortgages, leasehold state consent and proper documentation of the parent-child relationship, are where most transfers encounter delays.

Engaging a qualified conveyancing solicitor early in the process remains the most reliable way to ensure the filing is correct, the exemption is properly claimed, and the land office registration proceeds without interruption.

Sources

1. Lembaga Hasil Dalam Negeri (LHDN), e‑Duti Setem
2. LHDN, Guidelines on Stamp Duty (Garis Panduan)
3. LHDN, Relief from Stamp Duty
4. Stamp Act 1949 (Act 378), Official Text
5. Ministry of Finance Malaysia, Budget 2023 Speech
6. Malaysian Bar, Circular No. 170/2023 (Stamp Duty Exemption Order)