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If you`re looking to get a licence agreement in Malaysia, it`s important to understand the stamp duty requirements. Stamp duty is a government tax on certain types of documents, and it`s mandatory in Malaysia for various legal agreements, including licence agreements.

What is a Licence Agreement?

A licence agreement is a legal document that grants permission to a third party to use a particular asset or intellectual property belonging to another party. This can include anything from software and patents to music and art.

In Malaysia, a licence agreement must meet certain legal requirements and include specific clauses to protect both parties` interests. These clauses usually cover issues such as payment terms, termination rights, and confidentiality.

What is Stamp Duty?

Stamp duty is a tax that must be paid on certain legal documents in Malaysia. The stamp duty must be paid to the government within 30 days of the date of the agreement.

The amount of stamp duty payable on a licence agreement in Malaysia depends on the terms of the agreement and the value of the assets being licensed. Generally, the stamp duty charged is calculated based on the total value of consideration, which is the amount of money paid or payable for the licence.

How Do You Calculate Stamp Duty on Licence Agreements in Malaysia?

The calculation of stamp duty on a licence agreement in Malaysia can be quite complex. However, the Malaysian government provides a stamp duty calculator on its website that can help you determine the amount of stamp duty payable.

To use the stamp duty calculator, you need to provide information about the value of consideration, the type of asset being licensed, and the duration of the licence agreement.

Once you have entered all the relevant information, the stamp duty calculator will give you the amount of stamp duty payable. You can then pay the stamp duty online or at any stamp duty office in Malaysia.


In conclusion, getting a licence agreement in Malaysia is a straightforward process, but it`s important to understand the stamp duty requirements. You need to ensure that you calculate the correct amount of stamp duty payable and pay it on time to avoid any penalties.

By working with a legal professional, you can ensure that your licence agreement meets all the legal requirements and includes all the necessary clauses to protect your interests.

Remember, compliance with the law is essential to avoid legal issues and achieve success in your business or venture.