Exemption of stamp duty on all instruments related to the acquisition of real estate by a financier for rental purposes in accordance with the principles of Syariah or an instrument by which the financier assumes the contractual obligations of a client in the context of a main sale and sale contract. The penalty for delayed stamps varies depending on the delay period. The maximum fine is RM100 or 20% of the duty obligation, depending on the highest amount. Stamp duty on foreign currency credit contracts is generally capped at RM 2,000. Stamp duty exemption for lending or financing agreements implemented from 27 February 2020 to 31 December 2020 for the financing mechanism for small and medium-sized enterprises (SMEs) approved by Negara Bank Malaysia, namely the aid mechanism for aid organisations, the mechanism for all economic sectors, the mechanism for automation and digitisation of SMEs, the agro-financial mechanism and the micro-enterprise scheme. 300.001 – 500,000 – On the first 300,000 – 300,001 to 500,000 (Transfer and loan agreement) (Note 300,000 1) stamp duty on the transmission instrument related to the acquisition of the first residential property worth no more than RM 500,000 by a Malaysian citizen under the National Housing Department`s rent-to-own (RTO) system. The exemption is made in two stages of the transfer, i.e. from the real estate developer (PD) to a qualified financial institution (FI) and from the IF to the Malaysian citizen. The exemption is subject to the implementation of the following agreements between 1 January 2020 and 31 December 2022, namely.dem purchase and sale contract between FI and the RTO agreement between FI and the Malaysian citizen. Stamp duty assessment and payment can be made electronically through the domestic income assessment and payment stamps (STAMPS) system. Examples of exceptions, remissions or exemptions from stamp duty are: an instrument not stamped or under-stamped is not admissible as evidence before the courts and is not followed by a public servant.
In general, the transfer of properties can give rise to a significant stamp duty: RM3 for each RM1,000 or a fraction of it on the basis of consideration or value, depending on the higher value. The Stamp Board generally applies one of three methods of assessing common shares for stamp duty purposes: b) Government contract (i.e. between the federal government/The Malaysian government or the state government/local authority and service providers) Stamp duty is levied on instruments and not on transactions. If a transaction can be carried out without the creation of a transmission instrument, no tax is due. Exemption of stamp duty on all instruments of an asset-agreement – Asset Lease Agreement implemented between the client and the financier between the client and the financier, as well as the Syariah law for the renewal of an Islamic revolving financing facility, provided that the instrument of the existing facility is duly stamped.