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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 |
Exemption
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| Less than RM75,000 |
100%
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| RM75,000 to RM150,000 |
50%
|
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.
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