Exemption from stamp duty for all instruments of an asset Sale Agreement & Asset Lease Agreement concluded between the client and the financier and concluded in accordance with the principles of the Syariah Act to extend an Islamic revolving financing facility, provided that the instrument of the existing facility is properly stamped. In the eyes of the law, the physical transfer of property is not considered valid. For such a real estate transaction to be valid, the buyer must pay stamp duty, proof of purchase having been provided. Stamp duty is therefore the public tax paid at the time of the real estate transaction and makes the transfer certificate remunerated before the courts. The penalty for late filing varies depending on the period of delay. The maximum penalty is RM100 or 20% of the default tax, whichever is greater. Total exemption from stamp duty on the deed of transfer in respect of the purchase of the first residential property with a value not exceeding RM500,000 by a Malaysian citizen under the National Housing Department`s Rent-to-Own (RTO) programme. The exemption is granted in two stages, i.e. from the real estate developer (PD) to a qualified financial institution (FI) and from the FI to the Malaysian citizen. The exemption is subject to the execution of the following agreements between 1 January 2020 and 31 December 2022, i.e. the sales contract between fi and FI and the RTO agreement between FI and the Malaysian citizen.

Ringgit Malaysia`s credit agreements generally attract a 0.5% stamp duty For RM credit agreements or RM credit instruments without collateral and refundable on request or in reimbursement by individual shots, the tax liability is reduced by 0.1%. The imposition and payment of stamp duty can be made electronically through the Stamp Assessment and Payment System (STAMPS) of the tax office. Duty rates vary depending on the type of instrument and the values being traded. Exemption from stamp duty on loans or financing agreements concluded from 27 February 2020 to 31 December 2020 for the Financing Facility for Small and Medium Enterprises (SMEs) approved by Bank Negara Malaysia, namely the Special Facility, the Mechanism for All Economic Sectors, the SME Automation and Digitisation Facility, the agrofood mechanism and the microenterprise mechanism. As a general rule, the transfer of immovable property may give rise to a significant stamp duty: exemption from the transfer of undertakings or participations in the context of a restructuring or merger plan of undertakings (the conditions apply). RM3 for each RM1,000 or a fraction of them depending on the consideration or higher value. The Stamp Office generally applies one of three methods of valuation of ordinary shares for stamp duty purposes: who must bear the stamp duty and registration fees while opposing the construction contract. If it is the buyer or the contracting authority, stamp duty is levied on the instruments and not on the transactions. If a transaction can be made without creating a transfer instrument, no tax is payable. As far as public taxation is concerned, it generally varies from one State to another. Nevertheless, there is a general pattern that is followed. For example, let`s take a look at the stamp tax levied by the Karnataka state government.

With the exception of the above-mentioned documents, the Karnataka State Government levies stamp duty: up to 300,000 (transfer and loan agreement) (Note 1) Stamp duty on all instruments of an asset lease concluded between a client and a financier, concluded according to the Syariah principles for the restructuring or restructuring of an existing Islamic financing facility, is taxed at the level of the tax, duly classified on the balance of the nominal amount by the existing Islamic Financing Facility, which has been made available as an instrument of the existing Islamic Financing Facility. . . .