Forty Per Cent Remission of Stamp Duty for the Transfer and Financing of Completed Commercial Units in Flagships A and B of JS-SEZ for Qualifying Companies
31 July 2026
The following orders were gazetted on 28 July 2026:
- Stamp Duty (Instrument of Transfer in relation to Qualifying Person) (Johor-Singapore Special Economic Zone) (Remission) Order 20261 (“Transfer Remission Order”); and
- Stamp Duty (Instrument of Loan or Financing Agreement in relation to Qualifying Person) (Johor-Singapore Special Economic Zone) (Remission) Order 20262 (“Financing Remission Order”).
Both the remission orders referred to above have effect from 1 January 2025 until 31 December 2034.
The Remission under the Transfer Remission Order
Under the Transfer Remission Order, a 40% remission will be granted on the stamp duty chargeable on any instrument of transfer relating to the purchase of a commercial unit in Flagship A (
Johor Bahru Waterfront) (“
Flagship A”) or Flagship B (
Iskandar Puteri) (“
Flagship B”) in the Johor-Singapore Special Economic Zone
3 executed between a developer and a company named in the sale and purchase agreement which is incorporated under the Companies Act 2016 and resident in Malaysia (“
qualifying person”).
The Remission under the Financing Remission Order
Under the Financing Remission Order, a 40% remission will be granted on the stamp duty chargeable on any instrument of loan or financing agreement relating to the purchase of a commercial unit in Flagship A or Flagship B executed between a qualifying person and any of the following:
- a licensed bank under the Financial Services Act 2013;
- a licensed Islamic bank under the Islamic Financial Services Act 2013;
- a development financial institution prescribed under the Development Financial Institutions Act 2002;
- a co-operative society registered under the Co-operative Societies Act 1993;
- Borneo Housing Mortgage Finance Bhd. (Co. No.: 25457-V); or
- Mutiara Mortgage & Credit Sdn. Bhd. (Co. No.: 257663-T),
Common Conditions of the Remission Orders
The common conditions applicable to the Transfer Remission Order and the Financing Remission Order are that the sale and purchase agreement of the commercial unit:
- is executed between a developer and a qualifying person;
- is executed from 1 January 2025 to 31 December 2034;
- shall be in relation to a commercial unit the construction of which is completed before 1 January 2025; and
- shall not be in relation to the same commercial unit where a sale and purchase agreement for such commercial unit had been executed before 1 January 2025 and was subsequently cancelled by the same qualifying person.
Compliance with the conditions mentioned in the preceding paragraph is to be verified by the Iskandar Regional Development Authority
4.
Alert by Sheba Gumis (Partner) and Joey Tiw (Senior Associate) of the Tax Practice of Skrine.
3 The “Johor-Singapore Special Economic Zone” means the area as specified in the Johor-Singapore Special Economic Zone Agreement between the Government of Malaysia and the Government of the Republic of Singapore signed on 6 January 2025.
4 The “Iskandar Regional Development Authority” means the authority established under the Iskandar Regional Development Authority Act 2007.
This article/alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.