What fees are involved in transferring shares?
Is Capital Gains Tax Payable?
- When shares are held under an individual's name
- The gain from a share transfer is generally considered a Capital Gain
- Capital Gains earned by individuals are generally not subject to income tax
Share Transfers Must Be Stamped
- Share Transfer documents must undergo Stamping
- Even though Capital Gains may not be taxable
- Stamp Duty and related Stamping Fees are still payable
How Is the Stamping Fee Calculated?
- Stamping Fees are generally calculated based on the transfer value of the shares
- If a company is valued at RM500,000 but the shares are sold for RM1,000,000
- The Stamp Duty will be calculated based on the RM1,000,000 transfer value
Stamp Duty Rate
- The Stamp Duty rate for share transfers is generally 0.3%
- For a share transfer valued at RM1,000,000
- The Stamp Duty payable would be approximately RM3,000
Higher Value, Higher Cost
- The higher the share transfer value
- The higher the Stamp Duty payable