Stamp Act 1949 · Updated to 1 Jan 2026 · Part II · Provisions Applicable to Instruments Generally
9. Authorized person to compound instrument
Feedback & supportThe Collector, may by notification in the Gazette, authorize any person including any banker, dealer or insurer, to compound for the payment of duty on unstamped instrument subject to the condition that the instrument be drawn or drawn up and issued on a form to be supplied or adopted by the said person.
Collector
“Collector” includes the Collector of Stamp Duties and every Deputy Collector of Stamp Duties appointed under section 3;
The said authorized persons shall levy upon charge to the person to whom such instruments referred to in subsection (1) are issued the stamp duty mentioned in the First Schedule.
charge
“charge” means any instrument whereby, for the purpose of securing the payment of any definite and certain sum of money advanced or lent at the time or previously due or foreborne to be paid or for the repayment of money to be thereafter lent, advanced or paid, or which may become due upon any account current, together with any sum already advanced or due, or without, as the case may be, or for the performance of any contract or engagement, one person creates a right over or charge upon any specified property; and includes any instrument which purports to create or in which any person agrees to create any such right or charge;
The said authorized person shall pay on the 1st day of each calendar month in each year to the Collector the amount due and collected thereon as duties on such unstamped instruments and where he fails to pay the amount on each date specified or within fourteen days immediately thereafter, he shall in addition to the amount due pay a
Stamp 25
further amount of *five hundred ringgit or twenty per centum of the amount due whichever is the greater and any amount due shall be recoverable as a debt due to the Government.
The said authorized person shall deposit with the Collector, as security for the due payment to the Collector of any moneys payable under subsection (2), such sum, if any, as the Minister of
Finance may direct.
Instruments in respect of which payment of duty by way of composition has been made under this section, notwithstanding any other provision of this Act, shall be deemed to be duly stamped.
duty
“duty” means any stamp duty for the time being chargeable under this Act or under any written law;
Where any person has been authorized to compound for the payment of duty on unstamped instrument under subsection (1), the
Collector or any person authorized by him in writing, may, at all reasonable times, inspect any stocks of unstamped instrument held by such person and any books, records and documents kept by him in connection with the issue of such instrument.
writing
“writing” or “written” includes any handwriting, typewriting, printing, electronic record or transmission which is in an electronically readable form. Collector and Deputy Collectors of Stamp Duties
For the purpose of subsection (6), the person mentioned in subsection (1) shall keep and retain the books, records and documents in connection with the issue of such instruments referred to in subsection (1) or a period of seven years from the year in which such instruments are issued.