Updates

LHDN Dialogue in July 2025

Dear Members,

Minutes of Dialogue with LHDN: Treatment of Power of Attorney and Development Agreements

Date: 1st July 2025
Venue: Zoom Video Conferencing

Attendees:

    AAS Attendees:

• Mr William Ting Siew Chon (Head of AAS Conveyancing & Land Practice Sub-Committee)
• Mr Lee Jin Wen (Chairman of AAS MIRI
• Ms Kay Ting Huong Kheng (Honorary Treasurer of AAS)
• Ms Christine S H Lim (Honorary Secretary of AAS)
• Mr David Teo Seng Wee (Miri)
• Mr Tan Kee Heng (Kuching)
• Mr Louis Ng (Kuching)
  
• Mr Pui Yeong Kang (Miri)
• Ms Leong Hsin Ru (Kuching)
  
         LHDN Attendees:
• Meriam Binti Abdul Hamid
• Nor Habibah Binti Hamidon
• Monica Anak Sanyaw
• Chua Tian Siang
• Kelly Kebil
• Norliza

1. Legal Nature and Function of PA

2. Development Agreement (DA) and PA Relationship

3. Stamp Duty Treatment

4. Sarawak Land Code Implications

5. Taxation Issues

Conclusion
LHDN and AAS presented divergent views on the treatment of Power of Attorney and Development Agreements in land transactions. Key concerns relate to stamp duty classification, legal status of PA in Sarawak, potential for double taxation, and the appropriate timing for tax and duty imposition.

OUTCOME
LHDN requires time to go back to their legal team to finalise this matter. There is no date fixed yet but AAS has been in constant contact with LHDN to push for the final decision. If the decision is not favorable or acceptable to us, we shall file proceedings to the Court.

SIDE NOTE:
It occurs that ad valorem duty will be imposed on either DA or PA. LHDN’s approach now is to stamp DA on nominal and PA on ad valorem. 

Regards,
William Ting Siew Chon
Head of Conveyancing & Land Matters Sub-Committee
The Advocates Association of Sarawak