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

One of the most common questions Malaysian families ask a conveyancing lawyer is how much stamp duty for transfer of property from parent to child, and whether any exemptions can reduce the bill to zero. Under the Stamp Duty (Exemption) Order P. U. (A) 178/2023, the first RM1,000,000 of market value on a love and affection transfer between parents and children is fully exempt from ad valorem stamp duty, while a 50 % remission applies to the duty chargeable on any value above that threshold.

Since 1 January 2026, every instrument of transfer must now be self-assessed and filed through the Stamp Duty Self-Assessment System (SDSAS) on the LHDN e‑Duti Setem portal, replacing the previous adjudication-first model and introducing new penalty rules that every transferor needs to understand. This guide walks through the exact rates, worked calculations, the critical choice between a Form 14A Memorandum of Transfer (MOT) and a deed of gift, and the step-by-step SDSAS filing process that applies to family property transfers in 2026.

Quick Answer: How Much Stamp Duty for Transfer from Parent to Child (2026)

For most Malaysian families transferring residential property from parent to child on the basis of natural love and affection, the stamp duty on transfer of property from parent to child is either nil or significantly reduced. If the property’s market value (or the consideration stated, whichever is higher) does not exceed RM1,000,000, no ad valorem stamp duty is payable on the MOT instrument. For properties valued above RM1,000,000, ad valorem duty is calculated on the full value using the standard tiered scale, but the duty attributable to the first RM1,000,000 is exempt and the remaining duty qualifies for a 50 % remission under P. U. (A) 179/2023. A separate stamp duty of 0.

5 % applies to any loan or financing agreement if the transfer involves refinancing or an assumption of existing mortgage.

Stamp Duty Rates and How They Are Calculated

Under the Stamp Act 1949, stamp duty on an instrument of transfer of property (including a MOT) is charged on an ad valorem basis, meaning the duty scales with the property’s market value or the consideration paid, whichever is greater. LHDN publishes the applicable tiered rates on its stamp duty portal. For instruments executed from 2023 onward, the standard rates for transfers of immovable property are as follows:

LHDN adjudicates the value of the property based on the market value determined by LHDN’s own valuation or a professional valuation report, not merely the stated consideration. For a love and affection transfer where no monetary consideration changes hands, the market value is the sole basis for computing the duty before any exemption or remission is applied.

Worked Example Calculations

Example A, Property valued at RM800,000 (within the RM1m exemption cap)

Standard duty before exemption:

• First RM100,000 × 1 % = RM1,000
• Next RM400,000 × 2 % = RM8,000
• Next RM300,000 × 3 % = RM9,000
• Total standard duty = RM18,000

Because the property value is below RM1,000,000, the full RM18,000 is exempt under P.U.(A) 178/2023. The parent-to-child stamp duty payable on the MOT is RM0.

Example B, Property valued at RM1,800,000 (above the RM1m cap)

Standard duty on the full RM1,800,000:

• First RM100,000 × 1 % = RM1,000
• Next RM400,000 × 2 % = RM8,000
• Next RM500,000 × 3 % = RM15,000
• Next RM800,000 × 4 % = RM32,000
• Total standard duty = RM56,000

Duty attributable to first RM1,000,000 (RM1,000 + RM8,000 + RM15,000 = RM24,000) is exempt. Remaining duty: RM56,000 − RM24,000 = RM32,000. A 50 % remission under P.U.(A) 179/2023 applies to that balance: RM32,000 × 50 % = RM16,000. Final stamp duty payable = RM16,000, a saving of RM40,000 compared to a transfer without the love and affection relief.

Love and Affection Transfers: Stamp Duty Exemption Malaysia 2026

The stamp duty exemption for love and affection transfer of property in Malaysia was introduced as part of the 2023 Budget and gazetted through two Federal Gazette orders that took effect on 1 April 2023. These instruments remain operative in 2026 and form the legal foundation for intra-family transfer relief.

P.U.(A) 178/2023, Stamp Duty (Exemption) (No. 3) Order 2023 provides a full exemption from ad valorem duty on instruments of transfer executed on the basis of natural love and affection between specified family members, limited to the duty chargeable on the first RM1,000,000 of the property’s market value.

P.U.(A) 179/2023, Stamp Duty (Remission) (No. 3) Order 2023 grants a 50 % remission on the ad valorem duty chargeable on the market value exceeding RM1,000,000 for the same category of transfers.

Who Qualifies

• Eligible relationships: Transfers between parents and children (including adopted children and stepchildren in certain circumstances), and transfers between spouses. Grandparent-to-grandchild transfers also fall within the scope of the orders.
• Citizenship condition: The recipient must be a Malaysian citizen. Transfers to non-citizen children do not qualify for the exemption or remission under the current gazette orders.
• Consideration: The instrument must state that the transfer is made for natural love and affection with no monetary consideration (or nominal consideration only).
• One property per instrument: Each qualifying instrument covers one property. Multiple properties require separate instruments and separate SDSAS filings.

It is essential to understand the distinction between an exemption (which removes the charge entirely up to the RM1m threshold) and a remission (which reduces but does not eliminate the charge above that threshold). Under the SDSAS regime, both the exemption and the remission must be claimed at the point of self-assessment, they are not applied automatically.

MOT (Form 14A) vs Deed of Gift, Which to Use for How Much Stamp Duty for Transfer

Choosing the right instrument is one of the most consequential decisions in a family property transfer. The Form 14A Memorandum of Transfer and the deed of gift Malaysia practitioners often draft serve different purposes, and selecting the wrong one can delay registration or increase costs.

In practice, the recommended approach for a parent-to-child transfer is to prepare both instruments: a deed of gift that records the parties’ intention and the love and affection basis, and a Form 14A that serves as the registrable instrument at the Land Office. The consideration clause in the Form 14A should expressly state “natural love and affection” to support the stamp duty exemption Malaysia 2026 claim through SDSAS.

Form 14A (Memorandum of Transfer): Required Fields and Checklist

• Parties: Full name, NRIC number, and address of transferor (parent) and transferee (child).
• Property description: Title number, lot number, mukim, district and state as shown on the issue document of title.
• Consideration clause: State “natural love and affection”, do not insert a nominal monetary figure unless advised by your solicitor for specific lender or state authority requirements.
• Supporting statutory declaration: Sworn statement confirming the parent-child relationship and the gratuitous nature of the transfer.
• Valuation evidence: A professional valuation report or LHDN-accepted evidence of current market value (required for SDSAS self-assessment).
• State consent application: Required for leasehold properties or land subject to restrictions in interest.
• Bank consent letter: Required if the property is subject to an existing charge or mortgage.
• Identity documents: Certified copies of NRICs for both parties.

SDSAS / e‑Duti Setem: Step-by-Step Filing from 1 January 2026

The Stamp Duty Self-Assessment System (SDSAS), known in Malay as Sistem Taksir Sendiri Duti Setem (STSDS), replaced the previous adjudication-first stamping model for property instruments from 1 January 2026 onward. Under this system, the taxpayer (or their solicitor) calculates and declares the stamp duty payable, files the return, and pays the assessed amount through the LHDN e‑Duti Setem portal on MyTax, all before LHDN reviews and audits the submission.

The following step-by-step workflow applies to a parent-to-child transfer instrument in 2026:

1. Determine instrument type and return form. For a property transfer via MOT, select the correct instrument classification code. The SDSAS portal requires you to identify whether the instrument is a transfer, lease, loan agreement, or other category. A love and affection MOT falls under the “Transfer of Property” classification.
2. Obtain market value evidence. Secure a professional valuation report or rely on LHDN’s stamp duty valuation. The self-assessed value must reflect current market value, understating this value exposes the filer to audit adjustments and penalties.
3. Calculate the duty. Apply the 4-tier ad valorem scale to the full market value, then apply the P.U.(A) 178/2023 exemption (first RM1m) and P.U.(A) 179/2023 remission (50 % on the balance). Record all calculations in the return form.
4. Log in to MyTax and navigate to e‑Duti Setem. Access the SDSAS module through the LHDN MyTax portal. Upload the executed instrument (scanned PDF of the Form 14A), supporting documents (valuation report, statutory declaration, NRIC copies), and the completed return form.
5. Claim the exemption and remission. Within the e‑Duti Setem submission, select the applicable exemption order (P.U.(A) 178/2023) and remission order (P.U.(A) 179/2023). Upload evidence of the parent-child relationship (birth certificate, NRIC showing parentage) and Malaysian citizenship of the recipient.
6. Pay the assessed duty (if any). Make payment via FPX or other accepted online channels. For transfers within the RM1m exemption, the payable amount will be RM0 but the return must still be filed.
7. Receive stamp certificate. Upon successful submission and payment, the portal issues a digital stamp certificate. Print and attach this to the original instrument for presentation to the Land Office.
8. Submit to the Land Office for registration. Present the stamped Form 14A, stamp certificate, and all supporting documents to the relevant state Land Office for registration of the transfer.

Stamping timeline: Under the SDSAS regime, the instrument must be stamped within 30 days of execution. Late submissions attract penalties under section 47A of the Stamp Act 1949, with the penalty quantum escalating based on the length of the delay.

Common SDSAS Mistakes and How to Avoid Them

• Wrong instrument classification code: Selecting the incorrect instrument type causes the system to apply wrong duty rates or reject the exemption claim. Verify the code against the LHDN instrument classification list before submission.
• Missing evidence for love and affection: Failing to upload a birth certificate or other proof of the parent-child relationship is the most common reason for exemption claims being queried on audit.
• Understating market value: LHDN’s audit division cross-references submitted values against its own valuation database. A material understatement triggers an additional assessment plus penalties.
• Forgetting the loan agreement: If the transfer involves an assumption of mortgage or new financing, the loan agreement must be separately stamped at 0.5 %. Omitting this creates a second compliance gap.
• Filing after 30 days: Penalties for late stamping compound over time. The Malaysian Bar’s Circular No. 011-2026 outlined transitional relief for early SDSAS submissions, but this grace window is limited.

Lender Consent, Charges and Loan Agreement Stamping

If the property being transferred is subject to an existing mortgage or charge, the transfer cannot proceed without the lender’s written consent. This is a frequent complication in parent-to-child transfers, and early engagement with the bank is essential.

Most lenders will require one of two arrangements before consenting to a family transfer:

• Full redemption and discharge: The parent pays off the outstanding loan in full and obtains a discharge of charge (Form 16N) before executing the MOT. The child then arranges fresh financing if needed.
• Assumption of loan / refinancing: The child applies to assume the existing loan or takes out a new loan with the same or a different lender. The bank issues a new letter of offer, and a new charge is registered against the property in favour of the lender.

Stamp duty on the loan agreement: Any loan or financing agreement executed as part of the transfer attracts a separate stamp duty of 0.5 % of the loan amount. For example, if the child takes out a RM500,000 loan to finance part of the transfer or to refinance the parent’s existing mortgage, the loan agreement stamp duty is RM500,000 × 0.5 % = RM2,500. This is payable in addition to whatever MOT stamp duty (if any) is due after the love and affection exemption is applied.

Industry observers note that some lenders remain reluctant to consent to love and affection transfers where the property serves as security, preferring a formal sale and purchase transaction instead. Early legal advice on structuring the transfer to satisfy the lender while preserving the stamp duty exemption is strongly recommended.

Leasehold Properties and State Consent

For properties held under leasehold title, a transfer between parent and child requires state authority consent before the Land Office will register the MOT. The consent process and timeline vary by state, and practitioners should factor this into the overall transaction timeline.

• When consent is required: Leasehold land (whether residential, commercial, or agricultural) subject to restrictions in interest under the National Land Code 1965 requires the state authority’s prior approval for any transfer.
• Application process: The solicitor files a consent application with the relevant state Land Office or Land Administrator, accompanied by the executed MOT, statutory declaration, and supporting documents.
• Typical timelines: Processing times range from 3 to 12 months depending on the state. Selangor and Kuala Lumpur tend to process faster than some East Malaysian states. Expedited processing may be available in some jurisdictions for a premium fee.
• Fees: State consent fees vary. Some states charge a percentage of the property value; others charge a flat administrative fee. Confirm with the relevant state Land Office before submission.
• Consequences of proceeding without consent: A transfer registered without the required consent is voidable and may be set aside by the state authority. The Land Office will typically refuse to register the MOT until consent is obtained.

Practical Checklist and Timeline

The following 10-step checklist summarises the end-to-end process for a parent-to-child property transfer in Malaysia in 2026, from initial decision to final registration:

1. Engage a conveyancing solicitor and confirm eligibility for the love and affection exemption.
2. Obtain a professional property valuation report (allow 1–2 weeks).
3. If the property has an existing loan, apply for lender consent or arrange loan redemption (allow 4–8 weeks for bank processing).
4. For leasehold properties, submit the state consent application (allow 3–12 months).
5. Prepare the deed of gift and Form 14A (MOT) with the correct “natural love and affection” consideration clause.
6. Execute a statutory declaration confirming the parent-child relationship.
7. File the SDSAS return via e‑Duti Setem within 30 days of execution, claim exemption and remission orders.
8. Pay any stamp duty due (if property value exceeds RM1,000,000) and obtain the digital stamp certificate.
9. Lodge the stamped MOT and supporting documents at the Land Office for registration (allow 2–4 weeks for processing).
10. Collect the new issue document of title showing the child as registered proprietor.

Risks, Penalties and What to Watch For

A love and affection transfer is not risk-free. Families should be aware of the following potential pitfalls:

• LHDN audit of market value: Under SDSAS, LHDN reserves the right to audit self-assessed values within a prescribed review period. If the declared market value is found to be materially lower than LHDN’s assessed figure, the shortfall duty plus penalties will be imposed. A professional valuation report significantly reduces this risk.
• Late stamping penalties: Section 47A of the Stamp Act 1949 prescribes escalating penalties for instruments stamped after the 30-day window. The penalty can reach up to 100 % of the deficient duty for delays exceeding 12 months.
• Real Property Gains Tax (RPGT): While stamp duty may be exempt, an RPGT liability could crystallise if the parent acquired the property at a cost below its current market value and the transfer is treated as a disposal. Professional tax advice is recommended on RPGT implications.
• Lender objections: As noted above, banks may refuse consent or require the transfer to be restructured as a sale, which could affect the availability of the love and affection exemption.
• Non-citizen recipients: If the child is not a Malaysian citizen, the love and affection exemption and remission under the current gazette orders do not apply, and full ad valorem stamp duty will be chargeable.

Key Dates and Legislative Timeline

Conclusion: Getting the Stamp Duty for Transfer Right in 2026

Understanding how much stamp duty for transfer of property from parent to child in Malaysia requires more than just knowing the rate table. The interaction between the love and affection exemption orders, the new SDSAS self-assessment process, lender consent requirements, and stamp duty conveyancing obligations means that each family transfer has multiple moving parts that must be coordinated correctly. Filing a SDSAS return incorrectly, missing the 30-day stamping deadline, or failing to secure state consent for leasehold land can add thousands of ringgit in penalties and months of delay to what should be a straightforward transaction.

Professional conveyancing advice remains the most reliable way to ensure that eligible families capture every available exemption and remission while meeting every compliance requirement for property transfer in Malaysia.

Sources

1. Lembaga Hasil Dalam Negeri Malaysia (LHDN), Stamp Duty
2. LHDN, Sistem Taksir Sendiri Duti Setem (SDSAS / STSDS)
3. Stamp Act 1949 (Laws of Malaysia, Act 378)
4. Ministry of Finance Malaysia, Budget 2023 Speech
5. Malaysian Bar, Circular No. 011-2026 (SDSAS Operational Guidance)