Guides
Stamp Duty on Shares: Transfer & Contract Notes
Updated: 8 November 2026 Independently fact-checked.
Introduction
Stamp duty also applies to shares — but the instrument form differs by share type: listed shares on Bursa Malaysia involve contract notes, while private company shares involve share transfer instruments. This article explains the stamp duty basics for both situations.
Basic principles
Ad valorem duty is imposed on instruments of transfer of marketable securities (loan stock and shares of public companies listed on Bursa Malaysia Berhad), shares of other companies, and contract notes (capital market instruments) — R1.
All instruments listed in the First Schedule of SA 1949 must be stamped at the rates in that schedule (s.4(1) SA) — R3.
In a transaction involving several instruments, only the principal instrument is charged duty under the First Schedule; other instruments that complete the transaction are charged duty of RM10 each — R2 (s.4(3) SA).
Contract notes (listed shares)
Transfer of private company shares
Exemptions
Frequently Asked Questions (FAQ)
Q. What is a contract note? A. A capital market instrument used in listed share transactions and subject to ad valorem stamp duty.
Q. Must all instruments be stamped? A. Yes — all instruments in the First Schedule of SA 1949 must be stamped at the rates (s.4(1) SA).
Q. What if there are several instruments in one transaction? A. Only the principal instrument is charged duty under the First Schedule; other instruments completing the transaction are charged RM10 each (s.4(3) SA).
Glossary
- Contract note — capital market instrument for listed share transactions.
- Marketable securities — loan stock, shares of listed public companies.
- Ad valorem — by value.
- SA 1949 — Stamp Act 1949.
- STAMPS — HASiL's Stamp Duty Self-Assessment System.
Official sources
All sources below were reviewed on 8 November 2026. Official HASiL pages and documents: