Stamp Duty Remission And Exemption

In Malaysia, stamp duty is another form of tax levied on a variety of written documents including legal, commercial and financial instruments.
There are 2 types of stamp duty namely:
1. ad valorem stamp duty; and
2. nominal stamp duty.
For ad valorem stamp duty, the amount payable will vary depending on type and value of documents while for nominal stamp duty, the amount payable is fixed at RM10.00.
Below is a non-exhaustive list of stamp duty remission or exemption:
1. transfer of immovable property as a gift between parent and child (note the recipient must be Malaysian citizen): 50% remission on the stamp duty payable by virtue of Stamp Duty (Remission) (No.2) Order 2019, P.U.(A) 369/2019.
2. transfer of immovable property as a gift between husband and wife: 100% exemption under the Stamp Duty (Exemption) (No. 10) Order 2007, P.U.(A) 420/2007.
3. Instrument of transfer: pursuant to Stamp Duty (Exemption) No. 6 Order 2018, P.U.(A) 377/2018, for residential property: effective from 1st January 2019 to 31 December 2020, 100% stamp duty remission if the market value of the residential property is RM300,000.00 or less. By virtue of Stamp Duty (Remission) Order 2019, P.U.(A) 49/2019, effective from 1st July 2019 to 31 December 2020, RM5,000.00 is remitted for instrument of transfer if the market value of the residential property is above RM300,000.00 and not more than RM500,000.00. These is Only applicable to ownership of first residential property by individual who is a Malaysian citizen.
4. Housing loan: pursuant to Stamp Duty (Exemption) (No. 4) Order 2018, P.U.(A) 321/2018 and Stamp Duty (Remission) Order 2018, P.U.(A) 320/2018, 100% exemption for housing loan to finance a home of not more than RM300,000.00 or up to RM1,500.00 remission for housing loan to finance a home of not more than RM500,000.00 respectively. These are only applicable to loan instrument executed by individual who is a Malaysian citizen for the purpose of financing first residential property purchased between 1st January 2019 to 31st December 2020 (for the former) and between 1st July 2019 to 31st December 2020 (for the latter).
5. contract note executed for the sale and purchase transaction of shares of a medium and small capital company in Bursa Malaysia Securities Berhad: pursuant to Stamp Duty (Exemption) Order 2018, P.U.(A) 65/2018, 100% exemption effective from 1st March 2018 to 28th February 2021.
6. service contract: any amount exceeding 0.1% of the value of the contract is remitted by virtue of the Stamp Duty (REMISSION) (No. 4) Order 2010, P.U.(A) 476/2010. The same order also provides that for any subcontract to a stamped main contract, any amount exceeding RM50.00 is remitted.
7. Loan instruments without security: the amount of stamp duty which is in excess of 0.1% is remitted by virtue of Stamp Duty (Remission) (No. 2) Order 2012, P.U.(A) 258/2012.
8. Restructuring of loan: an instrument of loan or a financing agreement relating to the restructuring or rescheduling of a business loan or financing between a borrower or customer and a financial institution which is executed on or after 1 March 2020 but not later than 31 December 2020 is, on application, exempted from stamp duty by virtue of Stamp Duty (Exemption) (No. 2) Order 2020, P.U. (A) 165/2020. *Updated 24 May 2020
DISCLAIMER: the above information is not a legal advice. You should consult your legal advisor for an appropriate legal advice based on the particular facts before taking any action. The writer shall not be liable or responsible for any lost or damage suffered by any person resulting from use of the above information.
 The above opinion is the personel opinion of the writer, not representing the opinion of the employer/organisation of the writer.