Stamping Fee for Agreement

Stamping Fee for Agreement: What You Need to Know

When entering into a legal agreement, it`s important to ensure that all parties involved have evidence of it being legally binding. This is where a document stamping fee comes in – it is a process by which a legal agreement or contract can be given the necessary legal standing through the use of a stamp issued by the government.

What is a Stamping Fee?

A stamping fee is a government-imposed fee that is collected when a legal agreement or contract is being registered. This fee is paid to the government to ensure that the document has legal validity and can be enforced in a court of law if necessary.

The stamping fee is a one-time payment that is made at the time of registration, and it is usually a percentage of the value of the agreement. In Malaysia, for example, the stamping fee for an agreement between two parties is 0.5% of the total value of the transaction.

Why is a Stamping Fee Important?

A stamping fee is important because it provides legal validity to an agreement. Without the stamp, a document can be considered invalid, and it cannot be used as evidence in a court of law if a dispute arises.

When a document is stamped, it means that it has been reviewed by the government authorities, and they have confirmed that it is legally binding. This gives all parties involved peace of mind, knowing that they have a legally valid contract that can be enforced if necessary.

What Documents Need to be Stamped?

In Malaysia, various documents can be stamped, including:

1. Sale and purchase agreements for properties

2. Loan agreements

3. Tenancy agreements

4. Employment contracts

5. Share purchase agreements

The stamping fee for each document will depend on the total value of the transaction.

How to Pay for a Stamping Fee

The stamping fee is usually paid at the time of registration. An appointed agent, such as a solicitor or law firm, can assist in the registration and payment process. Alternatively, individuals can register and pay for stamping fees online through the Malaysian government’s online portal, MyGovernment Portal.


A stamping fee is a crucial part of ensuring that legal agreements are legally binding and enforceable. It provides proof that a document has been reviewed and deemed valid by the government authorities, which is important in cases where disputes arise.

If you are entering into a legal agreement or contract, it is important to understand the stamping fee requirements in your country. Consult a professional legal advisor to guide you through the process to ensure that your agreement is legally binding and enforceable.