Among the fiscal measures announced by the Minister of Finance, YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, in his 2022 Malaysian Budget speech on 29 October 2021 were the increase in the rate of stamp duty from 0.1% to 0.15% and the abolishment of the stamp duty limit of RM200 on contract notes relating to the sale of stocks and shares which are listed on Bursa Malaysia.
 
To give effect to the foregoing, item 31 of the First Schedule to the Stamp Act 1948 was amended from 1 January 2022 pursuant to the Finance Act 2021 to read as follows:
 
“CONTRACT NOTE:
 
Relating to the sale of any shares, stock or marketable securities in companies incorporated in Malaysia or elsewhere—
 
(a) For every RM1,000 or fractional part of RM1,000 of the value of any shares or stock – RM1.50
 
(b) For every RM1,000 or fractional part of RM1,000 of the value of any marketable securities – RM1.00.”
 
It is to be noted that the above amendment introduces two rates of stamp duty, namely:

1)	a rate of RM1.00 for every RM1,000 or part thereof in respect of contract notes relating to marketable securities (which as defined in the Stamp Act 1049 refers to “a security of such a description as to be capable of being sold or negotiated in any stock market in Malaysia or elsewhere”); and
2)	a rate of RM1.50 for every RM1,000 or part thereof in respect of contract notes relating to any shares or stock which fall outside the definition of “marketable securities”.

 
On 31 December 2021, the Malaysian Government announced that a maximum stamp duty of RM1,000 would be imposed on securities traded on Bursa Malaysia for a five-year period from 1 January 2022 to 31 December 2026. Our Alert on this announcement can be read here.
 
To give effect to the announcement of 31 December 2021, the Stamp Duty (Remission) Order 2022 [P.U.(A) 112/2022] was gazetted on 15 April 2022 to provide that “The stamp duty that is in excess of RM1000.00 calculated at the prescribed rate in item 31 of the First Schedule to the Stamp Act payable on all instruments of contract notes relating to the sales of any shares or stock which are listed on the stock market of a stock exchange approved under subsection 8(2) of the Capital Markets and Services Act 2007 is remitted.”
 
The Stamp Duty (Remission) Order 2022 is deemed to have come into operation on 1 January 2022 and will remain in force until 31 December 2026.
 
Alert by Tham Zhi Jun (Associate) of the Corporate Practice of Skrine.