Ringgit Malaysia loan contracts are generally taxed with a stamp duty of 0.5%. 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. Stamp duty exemption for instruments executed by a contractor or developer, i.e. a contractor or developer who has been commissioned or authorized by the Minister of Housing and Municipal Government to carry out renovations to an abandoned project. The instruments are loan agreements approved by the approved beneficiary and transmission instruments to transfer revitalized residential real estate related to the abandoned project. This applies to instruments implemented by emergency services or promoters on January 1, 2013 or after January 1, 2013 and no later than December 31, 2020, until December 31, 2025. 300.001 – 500,000 – On the first 300,000 – 300,001 to 500,000 (Note 1) Stamp duty on foreign currency credit contracts is generally limited to RM2,000. Stamp duty of 0.5% on the value of services/loans. However, stamp duty can be transferred by more than 0.1% for the following instruments: up to 300,000 (Transfer and Loan Agreement) (Note 1) b) Government contract (i.e.: exemption from stamp duty on the transfer instrument and the loan contract for the purchase of homes worth between RM 300,001 and RM 2,500,000 by Malaysian citizens in the 2020/2021 campaign: the penalty for delayed stamps varies according to the delayed periods. The maximum fine is RM100 or 20% of the duty obligation, depending on the highest amount. 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.
(a) Non-governmental contract (i.e. between private companies and service providers) Total exemption from stamp duty on the transmission instrument in connection with the acquisition by a Malaysian citizen of the first residential property worth no more than RM 500,000 under the National Housing Department`s rent-to-own (RTO) system.