Malaysia Budget 2001
Malaysia Budget 2001
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Stamp Duty

Offshore Company

Merger of Stockbroking Companies

Corporate Debt Restructuring Scheme

Securities Listed on Malaysian Exchange of Securities Dealing and Automated Quotation Bhd (MESDAQ)

Issue of Debentures Approved by Securities Commission or their Purchase / Transfer

Change of Financing Scheme from Conventional to Syariah





1. Offshore Company

Under the Stamp Duty (Exemption) Order 2000, instruments described below are exempted from stamp duty :-

i. All instruments which are executed by an offshore company in connection with an offshore business activity.

ii. All Memorandum and Articles of Association of an offshore company.
iii. All instruments of transfer of shares in an offshore company.

The terms "offshore company" and "offshore business activity" carry the meanings assigned in the Labuan Offshore Business Activity Tax Act, 1990.

The exemption came into operation on 21st January 2000.



2. Merger of Stockbroking Companies

Instruments executed on or between 30th October 1999 until 31st December 2000 pursuant to an approved scheme of merger are exempted from stamp duty under the Stamp Duty (Exemption)(No.5) Order 2000.



3. Corporate Debt Restructuring Scheme

The Stamp Duty (Exemption)(No.7) Order 2000 provides that all instruments executed pursuant to a corporate debt restructuring scheme completed between 30th October 1999 until 31st December 2000 under the supervision of the Corporate Debt Restructuring Committee, Bank Negara Malaysia or under Pengurusan Danaharta Nasional Berhad are exempted from stamp duty.



4. Securities Listed on Malaysian Exchange of Securities Dealing and Automated Quotation Bhd (MESDAQ)

Instruments of transfer of securities listed on MESDAQ executed in favour of permitted lenders and borrowers and instruments of transfer of collateral in respect of securities borrowing and lending transaction made under approved Securities Borrowing and Lending Agreement are exempted from stamp duty vide the Stamp Duty (Exemption)(No.12) Order 2000.

The exemption takes effect from 30th April 1999.



5. Issue of Debentures Approved by Securities Commission or their Purchase / Transfer

The Stamp Duty (Exemption)(No.23) Order 2000 which came into operation on 1st July 2000 exempts from stamp duty all instruments relating to the issue, offer for subscription/purchase of debentures approved by the Securities Commission and the transfer of such debentures.



6. Change of Financing Scheme from Conventional to Syariah

The Stamp Duty (Remission)(No.3) Order 2000 which came into operation on 25th August 2000 provides for the remission of duty on asset sale agreement for a loan executed between a customer and a financier under the syariah law pursuant to a change of scheme for financing an existing loan from conventional to syariah to the extent of the duty on the balance of the principal amount of the existing loan.

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© October 2000