Stamp duty adjudication in Malaysia (2026): when LHDN uses a higher JPPH value, and how to object or appeal

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 13 November 2026

This guide is for buyers and families transferring property in Johor Bahru and elsewhere in Malaysia, local or foreign, who receive a stamp duty assessment higher than they expected. The short answer: stamp duty on a property transfer is charged on the price or the market value, whichever is higher, and LHDN can rely on a valuation from JPPH, the government valuation department. If you disagree, you still pay the assessed duty on time, then object in writing to LHDN within 30 days of the notice. If the review does not satisfy you, you can appeal to the High Court within 21 days of the decision.

What stamp duty adjudication means

Adjudication is LHDN’s assessment of the duty payable on an instrument. Under section 36 of the Stamp Act 1949, the Collector assesses the duty and can ask for the facts and evidence needed. Since 1 January 2026 the Act has two routes: self-assessment, where the payer declares and pays, and formal assessment by the Collector (LHDN guideline, November 2025).

All stamping now goes through e-Duti Setem on LHDN’s MyTax portal. The old STAMPS system was discontinued on 31 December 2025 (The Star, 19 December 2025). Self-assessment is being phased in:

Phase	From	Instruments
1	1 January 2026	Leases and tenancy agreements, security instruments and general stamping
2	1 January 2027	Transfers of real property not involving a JPPH valuation
3	1 January 2028	Remaining instruments

So in 2026, a property transfer is still formally assessed: your lawyer submits the memorandum of transfer, LHDN may check the value with JPPH, and LHDN issues a notice of assessment. LHDN’s own process chart for the older system showed a JPPH check between submission and assessment (LHDN, March 2023).

Why the duty can be higher than your price suggests

For a transfer, Item 32(a) of the First Schedule charges duty on the money paid or the market value at the time of the transfer, whichever is greater. JPPH has explained that its valuers follow the Malaysian Valuation Standards, which define market value as the price between a willing buyer and a willing seller at arm’s length, after proper marketing, with neither under compulsion (The Sun, 2023). A price agreed between relatives, a quick sale or a sale between related companies may not meet that definition.

Common situations where the assessed value comes in above the price:

• Transfers within a family, for example a parent to a child, where little or no money changes hands. See my guide to transferring property to family.
• A price well under recent recorded sales in the same project or street, for example because the seller needed cash quickly.
• Sales between related parties, such as an owner selling to their own company.
• Unusual homes with few comparable sales, where the valuer’s comparables may not fit.

How much difference it makes

For Malaysian buyers, transfer duty on a home is tiered: 1% on the first RM100,000, 2% on the next RM400,000, 3% on the next RM500,000 and 4% above RM1 million (LHDN, March 2023). Budget 2026 raised the rate on residential transfers to non-citizens and foreign companies from 4% to 8% (Malay Mail, 10 October 2025).

Basis	Value	Duty for a Malaysian buyer
Price in the SPA	RM600,000	RM12,000
Market value assessed by LHDN	RM650,000	RM13,500
Difference	RM50,000	RM1,500 more

First-home buyers should check whether an exemption applies; Budget 2026 proposed extending the full exemption on transfers and loan agreements for first homes up to RM500,000 until 31 December 2027 (Malay Mail, October 2025). My stamp duty guide for 2026 has the current rates and conditions.

Time limits after you receive the notice

Step	Time limit	Law or source
Stamp the signed transfer	30 days from signing in Malaysia, or 30 days from arrival in Malaysia if signed abroad	LHDN penalty page, updated May 2026
Pay the duty in a notice of assessment	14 days from the date of the notice, or a longer period the Collector allows; check the date on your notice	LHDN late-stamping penalty guideline, November 2025
Object to the assessment	30 days from the notice of assessment or additional assessment, or a longer period the Collector allows	Stamp Act, section 38A; LHDN guideline, November 2025
Appeal to the High Court	21 days after you are notified in writing of the Collector’s decision, with the duty paid as decided	Stamp Act, section 39; LHDN guideline, November 2025

Paying late adds a penalty: the higher of RM50 or 10% of the unpaid duty within three months of the deadline, and the higher of RM100 or 20% after that (LHDN, rates from 1 January 2025). Late payment against a notice is counted from the day after the due date.

How to object under section 38A

An objection is a written request asking the Collector to review the assessment. Section 38A requires you to state your grounds; the Collector can ask for further particulars, then confirms the assessment or substitutes a new one, and tells you the decision in writing. In practice your conveyancing lawyer or a tax adviser usually files it.

• Pay the assessed duty by the due date to avoid penalties and keep the transfer moving.
• Object within 30 days of the notice, in writing, quoting the notice and adjudication reference.
• Explain why the value is wrong. For example: the SPA was a genuine arm’s-length sale after open marketing; the comparables are a different size, floor, tenure or condition; or the property has a defect, restriction or short remaining lease.
• Attach evidence. The stamped SPA, proof of marketing, recorded sales of similar units, photos of the condition and, where the amount justifies it, an independent valuation report.
• Keep proof of filing and diarise the 21-day appeal deadline from the decision.

Evidence that carries weight

Recorded transactions are the core. NAPIC, part of JPPH, publishes open transaction data, and its paid e-Data service has been open to the public since February 2026 (The Edge Malaysia, January 2026). A report from a registered valuer, prepared under the Malaysian Valuation Standards, is the strongest evidence. On the Board’s scale, the fee for most home valuations is 0.25% of the first RM100,000 and 0.2% of the balance up to RM2 million, minimum RM400 (LPPEH, checked November 2026), so weigh it against the duty in dispute. See my guide to independent valuations.

The courts have looked at this question. In a High Court decision reported in January 2026, the court held that the Collector is not bound to adopt a JPPH valuation and must weigh all the evidence, including the agreed price and private valuation reports (High Court of Malaya, Civil Suit No. AA-24NCvC-23-01/2024). Every case turns on its own facts, so treat this as background, not a forecast.

Appealing to the High Court under section 39

If the Collector’s decision on your objection does not satisfy you, section 39 allows an appeal to the High Court within 21 days after you are notified of the decision, on payment of the duty as decided. You can require the Collector to state a case setting out the question and the decision. If the court finds the assessment wrong, it can order the excess duty, and any penalty paid because of it, to be repaid; if the assessment stands, you may be ordered to pay the Collector’s costs. Either side may appeal further.

An appeal means court fees, lawyers’ costs and time. For a typical JB home the extra duty is often smaller than the cost of litigating, so most owners stop at the objection stage. A lawyer can tell you whether your case justifies more.

What happens to your purchase meanwhile

• The transfer needs proper stamping. The land office will not register a transfer that is not duly stamped, so pay the assessed duty and object in parallel. See memorandum of transfer and registration.
• Who pays the extra. The SPA normally makes the buyer responsible for stamp duty on the transfer. Ask your lawyer to keep a small buffer for an assessment above the price.
• Unstamped documents. An instrument that is not properly stamped cannot be admitted as evidence in court (section 52), a second reason to stamp on time.
• Foreign buyers in Johor. Values matter twice: PTG Johor’s consent charge for a foreigner’s residential subsale is 3% of the JPPH valuation or the stamped SPA value, minimum RM30,000, from 1 July 2025. See state consent in Johor.

From 2027: self-assessment for most transfers

When property transfers not involving a JPPH valuation move to self-assessment on 1 January 2027, the parties will work out and declare the duty themselves on MyTax, and the declaration is deemed an assessment when submitted (LHDN, August 2026). LHDN can raise additional assessments generally up to five years later, with no limit for fraud, wilful default or negligence (The Sun, Tax matters column). Keep the instrument and records for seven years from payment, as LHDN requires, including the evidence for the value you declared.

Where to buy if this matters to you

Valuation questions are easiest where there are many recorded sales of similar units. Areas I cover regularly:

• Mount Austin: many comparable condo and terrace sales.
• Tebrau, Setia Indah and Molek: established landed estates.
• Skudai, Tampoi and Kempas: older family homes.
• Iskandar Puteri: newer townships near the Second Link.
• JB Sentral and Bukit Chagar: high-rises near the RTS Link station.

Compare them on my JB property map, and see how to check transaction prices.

More Johor living guides: Stamp duty in 2026 · Independent valuations · Transferring property to family · Legal fees when buying

Frequently asked questions

Why is my stamp duty based on a value higher than my purchase price?

Duty on a property transfer is charged on the price or the market value, whichever is greater. LHDN can rely on a valuation, often from JPPH, and assess duty on that value if it is higher than the price in your SPA.

How long do I have to object to a stamp duty assessment?

30 days from the date of the notice of assessment or additional assessment under section 38A of the Stamp Act 1949, or a longer period if the Collector allows. The objection must be in writing and state your grounds.

Do I have to pay the stamp duty while my objection is pending?

Yes. LHDN’s guideline says the assessed duty must be paid even while an objection or appeal is pending. Paying on time also avoids late-stamping penalties and lets the transfer be registered.

Can I appeal to court if LHDN rejects my objection?

Yes. Under section 39 you can appeal to the High Court within 21 days after being notified of the Collector’s decision, after paying the duty as decided. If the court finds the assessment wrong, it can order the excess repaid.

Does an independent valuation help a stamp duty objection?

It is usually the strongest evidence, alongside recorded sales of similar units. A High Court decision reported in January 2026 held that the Collector must weigh all the evidence, including private valuations, not only a JPPH figure.

What is the penalty for paying stamp duty late?

The higher of RM50 or 10% of the unpaid duty if paid within three months of the deadline, and the higher of RM100 or 20% after that, under rates in force since 1 January 2025.

Buying, selling or transferring a JB property?

Tell me the property and the price or value you are working with. I’ll share recorded transactions for similar units so you, your lawyer and a registered valuer can judge the market value, before or after a stamp duty notice. You can also book an appointment, or a Zoom consultation if you are abroad.

Sources: LHDN, Garis Panduan Pengenalan Duti Setem di bawah Akta Setem 1949 (assessment routes, objection and appeal, section 52), 6 November 2025; LHDN, Garis Panduan Pengenaan Penalti ke atas Surat Cara yang Lewat Disetemkan, 6 November 2025; LHDN, Penalti Duti Setem, page updated 13 May 2026; LHDN, Sistem Taksir Sendiri Duti Setem (STSDS), page updated 28 August 2026; LHDN, STAMPS user slides (transfer process and rates), March 2023; The Star, “E-stamp duty begins transition, LHDN urges early testing”, 19 December 2025; Stamp Act 1949 (Act 378), sections 36, 38A, 39, 40 and 52 and Item 32(a) of the First Schedule; The Sun, “JPPH assessment of market value done according to Stamp Act 1949”, 2023; The Sun, “Tax matters: significant changes to stamp duty from 2025” (part two), accessed November 2026; Malay Mail, “Highlights from Budget 2026”, 10 October 2025; High Court of Malaya, Civil Suit No. AA-24NCvC-23-01/2024 (Collector not bound by a JPPH valuation), reported January 2026; LPPEH (BOVAEP), scale of fees, Seventh Schedule (Rule 48), valuation, checked November 2026; LPPEH (BOVAEP), Malaysian Valuation Standards, sixth edition, effective 1 January 2019; NAPIC (JPPH), Data Transaksi Terbuka (open transaction data), checked November 2026; The Edge Malaysia, “Napic’s e-data to be available to public starting Feb 1”, 29 January 2026; Pejabat Pengarah Tanah dan Galian Johor, Pekeliling PTG Bil. 3 Tahun 2025, 13 June 2025

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 13 November 2026, not legal or tax advice. I am not a valuer or a lawyer. Stamp duty rules, deadlines and rates change; confirm your notice, dates and options with LHDN, your lawyer or a tax adviser before you act.