Stamp duty exemption on the deed of transfer and loan agreement for the purchase of residential property with a value between RM300,001 and RM2,500,000 by Malaysian citizens as part of the 2020/2021 Home Ownership Campaign: b) Government contract (i.e. between the Federal Government/State Government of Malaysia or the State/Local Authority and service providers) a) Non-governmental contract (i.e. between entities private and service providers) The stamp is intended to replace the lease agreement and is executed by the Inland Revenue Board of Malaysia (LHDN). The administration fee goes to the real estate agency or owner. Stamp duty on foreign currency loan contracts is generally limited to RM 2,000. Exemption from stamp duty on loan or financing contracts concluded from 27 February 2020 to 31 February 2020. December 2020 for a financing facility for small and medium-sized enterprises (SMEs) approved by Bank Negara Malaysia, namely the Special Facility, the All-Economic Sectors Facility, the SME Automation and Digitalization Facility, the Agribusiness Facility and the Microenterprise Facility. The service contract is performed by: (iv) the agreement referred to in points (a) and/or (b) has been duly stamped at the rate specified in paragraph 2(1) of the Stamp Duty (Replacement) Ordinance 2021 The penalty for late stamping varies depending on the delay period. The maximum penalty is RM100 or 20% of the defective duty, whichever is greater. The treatment of stamp duty also applies to guarantees relating to instruments of service contracts.

Exemption from stamp duty on instruments purchased by a salvage contractor or real estate developer, i.e. a contractor or developer appointed or authorised by the Minister of Housing and Local Government to carry out rehabilitation work on an abandoned project. Instruments are loan agreements and deeds of transfer approved by the authorized funder for the purpose of transferring a revitalized residential property in connection with the abandoned project. This provision shall apply to instruments executed by the contractor or developer from 1 January 2013 but at the latest until 31 December 2020, extended until 31 December 2025. (i) Government procurement (e.g. service contracts from government agencies/ministries) The Regulation provides that service agreement instrumentsNote levied under point 22(1)(a) of the first list of the SA are subject to stamp duty at the rate of 0.1% (i.e. stamp duty above 0.1% is cancelled). Ringgit Malaysia loan agreements are generally subject to a stamp duty of 0.5% However, a reduced stamp duty of 0.1% is available for RM loan agreements or RM loan instruments without collateral and redeemable on demand or as a one-time repayment. 300,001 – 500,000 – Of the first 300,000 – 300,001 to 500,000 (instrument of assignment and loan)(Note 1) (ii) The date of execution of the agreement referred to in points (a) and/or (b) No document shall be admitted as evidence if the document is not duly stamped. In other words, without stamping the documents yourself, you cannot rely on them in court. Notwithstanding the above, if the parties referred to in points (a) and (b) subsequently conclude a service contract with another sub-provider of the service, etc., the amount of stamp duty levied on this new instrument in accordance with point 22(1)(a) of the First Annex to the SA is limited to RM 50 (i.e.

stamp duty levied above RM 50 is cancelled). In this case, the agreement should include: Notwithstanding the legal nature of the unstamped contract, certain instruments must be stamped in Malaysia for it to be effective. The striking example of such an instrument is the immovable property transfer instrument to transfer tangible assets such as real estate or company shares. The competent authorities responsible for the transfer and registration of the new owner or owner shall require that the instruments be paid in accordance with the stamp duty subject to royalties in accordance with the First Annex to the Act. If you wish to file an unstamped document as evidence in court, you must stamp the document and pay the late stamp penalty to the Inland Revenue Board (LHDN). For lending instruments that include Malaysian ringgit loans, an interest rate of 0.1% is available for unsecured loans. Stamp duty on foreign currency loan contracts is generally limited to RM2,000.00. if the instrument is stamped within 3 months of the stamping date, exemption from stamp duty on all instruments relating to the purchase of real estate by a financier for the purpose of returning it in accordance with Shariah principles or on an instrument whereby the lender assumes a customer`s contractual obligations under a main sales contract. The stamping must be done in the manner provided for in sections 40 and 47 of the Act so that the documents have full legal effect by being admissible as evidence in a court.