1. Securitisation - Tax Exemption

Currently, instruments used in the securitisation of assets is subject to stamp duty and real property gains tax on a transfer of chargeable assets.

To promote the development of the bond market, it is proposed that instruments used in the transfer of assets be exempted from stamp duty and real property gains tax arising from asset transfers from 30th October, 1999 until 31st December, 2000.

2. Islamic Financing Instruments

Currently, the Islamic banking products suffer certain stamp duty disadvantages compared to conventional banking products.

To enhance the competitiveness of Islamic banking scheme products, it is proposed that all instruments related to Islamic banking schemes, including the Al-Ijarah term loan instruments be subject to stamp duty similar to instruments used in conventional banking.

This proposal is to be effective from 30th October, 1999.

3. Stamp Duty on Instrument of Transfer of Houses

To encourage home ownership for low and medium income groups, it is proposed that stamp duty on instruments of transfer be exempted as follows:-

Value of House


Less than RM75,000


RM75,000 to RM150,000


This exemption is to be given in respect of all instruments executed between 1st January, 2000 to 31st December, 2001.

4. Cancellation of Adhesive Stamps

The Second Schedule of the Stamp Act is to be amended to provide that an immigration officer is required to cancel the adhesive stamps on security bonds for the grant of a professional visit pass for an artiste, a social visit pass and a work permit pass. This amendment is to be effective upon the coming into operation of the Finance Bill.


This report is reproduced with permission from Kassim Chan Tax Services Sdn Bhd (36421-T) and Deloitte Touche Tohmatsu Tax Services Sdn Bhd (151497-P).
Address: Level 16, Uptown 1, 1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Malaysia.
Tel: (603) 715 1888, Fax: (603) 715 7768, (603) 715 7769
tax@kassimchan.com.my / tax@deloitte.com.my

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