Stamp duty on foreign currency credit contracts is generally capped at RM 2,000. These two guidelines explain the application procedures by setting regulatory conditions for authorization, the requirement to provide documents and the circumstances that could lead to the withdrawal of the stamp duty order granted. A copy of the legal declaration to be provided for the application of the aforementioned stamp duty reduction is also attached in the respective guidelines. Tariff rates vary depending on the nature of the instruments and the values implemented. As a general rule, the transfer of real estate can give rise to a significant stamp duty: the residences must be rented under a legal tenancy agreement between the landlord and the tenant. 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. In Malaysia, stamp duty is a tax levied on a large number of written instruments defined in the First Schedule of Stamp Duty Act of 1949. Stamp duty is generally levied on legal instruments, trading instruments and financial instruments. RM3 for each RM1,000 or a fraction of it depending on the counterparty or value, depending on the highest value. The Stamps Office generally applies one of three methods of assessing common shares for stamp duty purposes: instruments exported to Malaysia and subject to customs duties must be stamped within 30 days of the date of execution. If the instruments are performed outside Malaysia, they must be stamped within 30 days of their first reception in Malaysia. 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 the automation and digitisation of SMEs , the agri-financial mechanism and the micro-enterprise scheme. If the instrument is not buffered within the time limit, a penalty is imposed.
The penalty for delayed stamps varies depending on the delay period. The maximum fine is RM100 or 20% of the duty obligation, depending on the highest amount. Exemptions, remissions or tax breaks are as follows: stamp duty is levied on instruments and not on transactions. If a transaction can be carried out without the creation of a transmission instrument, no tax is due.