Stamp Duty Exemption Orders are given by the government from time to time to relief parties from paying stamp duties in specific situations, provided the requirements are met. Stamp duties may cost a huge sum of money so looking out for the relevant stamp duty exemptions that are either still valid or just expired is very important for both lawyers and non-lawyers.
With the start of 2021, here are eleven (11) stamp duty exemption orders that have expired in year 2020. These include stamp duty exemptions that have been valid since many years ago in 2012, 2013, 2018, and 2019. The oldest exemption that is set to expire on 31 December 2020 is a long standing exemption of stamp duty for transfer or lease for purpose of qualifying activity carried on in the East Coast Economic Region valid since year 2008. It must be a coincidence that all exemption orders scheduled to expire in year 2020 expired on the last day, 31 December 2020. Therefore, you could have benefited from the following if you already have related on-going transactions, depending on the stage of completion you are currently at.
Eleven (11) stamp duty exemption orders that have expired in year 2020, are relating to:
1. Scheme to promote Malaysia International Islamic Financial Centre
2. East Coast Economic Region
3. Restructure Loan for Debt Management Program
4. First House (SNP)
5. Perlindungan Tenang Project
6. First House (Loan)
7. Qualifying Tourism Project
8. Restructure Business Loan
9. Business Loan
10. Special Relief Fund
11. Tun Razak Exchange Commercial Property
If you have missed the opportunity to benefit from stamp duty exemptions in year 2020, do take note of the five (5) stamp duty exemption orders expiring in year 2021. Special note should be taken on the exemption orders relating to sale and purchase of shares (expiring on February 2021), purchase of property above RM300,000 under Home Ownership Campaign (expiring on May 2021), and loan under Home Ownership Campaign (expiring on May 2021). If you are planning to get a loan with Agrobank or having a project related to RAPID Complex, take note of the relevant stamp duty exemptions that may be applicable to you this year. Those 2 related exemption orders are valid until end of year 2021 only.
Five (5) stamp duty exemption orders expiring in year 2021, are relating to:
1. Sale and Purchase of Shares
2. Home Ownership Campaign (SNP)
3. Home Ownership Campaign (Loan)
4. Agrobank Financing Program
5. RAPID Complex
There are also five (5) stamp duty exemption orders that continue to be valid in 2021 and scheduled to expire thereafter, either in 2022 or 2025. You might be interested with the stamp duty exemption orders relating to Rent-to-Own Scheme and Abandoned Project that not many people are aware of.
Five (5) stamp duty exemption orders that continue to be valid in 2021, are relating to:
1. Rent-To-Own Scheme
2. Tun Razak Exchange Service Agreement
3. Exchange-Traded Fund
4. Abandoned Project (Rescue Contractor or Developer)
5. Abandoned Project (Purchaser)
That said, one should not forget the eight (8) exemption orders without expiry date stated. For example, the stamp duty exemption for instruments executed by Labuan entity for Labuan business activity is valid since 11.02.2010. Another example is the stamp duty exemption for public sector home financing valid since 01.01.2017. Without any order stated otherwise, it seems the government is not planning to end the exemption of stamp duties for these transactions so do make sure you check them out to see if it is relevant to you.
Eight (8) exemption orders without expiry date stated, are relating to:
1. Public Sector Home Financing
2. Malaysia-Thailand Joint Authority Research
3. State Housing Loan
4. Sukuk Kijang
5. ASEAN Infrastructure Fund Limited
6. Labuan Business Activity
7. Professional Service Fund
8. Micro Financing Scheme
I hope you enjoy these lists of stamp duty exemption orders. They comprises principal exemption orders relating to stamp duty since year 2011 until year 2020 which I have compiled for ease of reference. The orders do not have official names but merely PU(A) numbers assigned to them, the names you see in the list are base on the most relevant requirement stated in the contents of each order so one can grasp the gist if it without the need to read each of them one by one.
Disclaimer: These lists are merely for references and not to be relied on as legal advice. You must refer to the actual order published in the gazette to truly understand the contents of each order. Do consult a lawyer to determine if it fits to your situation.
Hope it helps and Happy New Year 2021!
By Chew Yiting on 3rd January 2021.
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