Many businesses assume stamp duty is something both parties can negotiate freely. In reality, the law has already decided who pays, and it depends on the type of document you are signing.

Under the Stamp Act 1949, the responsibility is fixed. If you are buying a property, you pay as the buyer. If you are taking a loan secured by a charge or mortgage, you pay as the borrower. If you are renting a premises, you pay as the tenant. The person signing as the acquiring or obligated party is generally the one the law holds responsible.

Private agreements do not change this. You can contract with the other side to have them bear the cost, but that arrangement only binds the two of you. The legal obligation under the Act stays with the party the law names. If stamp duty goes unpaid, penalties under Section 49 follow that same party, not whoever agreed privately to foot the bill. And if someone else steps in and pays on your behalf, Section 56 gives that person the right to recover the full amount from you.

Knowing who bears the obligation before you sign protects your business and keeps your documents legally sound.

If any of your business documents from this period were not properly stamped, there is currently a window to put things right. LHDN has extended the Stamp Duty Special Voluntary Disclosure Programme by six months, now running from 1 July 2026 to 31 December 2026. Documents executed between 1 January 2023 and 31 December 2025 can be regularised within this period without facing the usual penalty. Our CFO advisory team helps businesses stay ahead of regulatory changes without disruption. Reach us on WhatsApp at 010-246 2151.