RE : Advisory on Stamp Duty Assessment for Powers of Attorney (PA)

Dear Members of the Perak Bar,

This advisory is intended to provide members with recent insights into the stamp duty assessment for Power of Attorney (PA) documents, following our recent discussions with the Inland Revenue Board (LHDN).

Key Considerations for Stamping a Power of Attorney

We wish to highlight the following key points regarding how stamp duty for a PA is typically determined:

• Based on Powers Conferred: The stamp duty assessment is contingent on the scope of authority granted within the PA.
  • A PA limited to authorising signatures on the donor’s behalf will generally attract a nominal duty.
  • Conversely, a PA granting comprehensive powers to sell and dispose of a property is likely to be assessed with ad valorem duty, calculated based on the property’s market value.
• PA and MOT as a Single Transaction: To avoid separate duty assessments, members should be prepared to provide clear evidence that a PA and a subsequent Memorandum of Transfer (MOT) constitute a single, indivisible transaction. Without such proof, duty may be imposed on both instruments.

Final Assessment by LHDN

It is important to remember that the final stamp duty valuation rests entirely within the discretion of the LHDN. The assessment will be made after a careful review of the specific terms and context of the documents submitted.

Therefore, for definitive guidance or rulings on specific or complex cases, members are strongly encouraged to consult directly with the relevant LHDN branch.

We trust this information is of assistance to members.

Thank you.

CELIA TAN YIN FONG

CHAIRPERSON
CONVEYANCING SUB COMMITTEE