The
Stamp Duty (Exemption) (No. 11) Order 2021 [P.U.(A) 367/2021] (‘
Exemption Order’) which exempts an instrument of loan or financing agreement relating to the restructuring or rescheduling
1 of loans or financing between a borrower or customer and a financial institution that satisfies the conditions set out in the Exemption Order (‘
qualifying instrument’) will be further extended until 31 December 2022 when the
Stamp Duty (Exemption) (No. 11) 2021 (Amendment) Order 2021 [P.U.(A) 439/2021 ] (‘
Extension Order’) comes into operation on
1 January 2022.
One of the conditions that has to be satisfied to qualify for exemption from stamp duty, as stipulated in paragraph 2(1) of the Exemption Order, is that the qualifying instrument must be executed on or after 1 July 2021 but no later than 31 December 2021.
The Amendment Order will amend paragraph 2(1) of the Exemption Order by replacing the words ‘31 December 2021’ with the words ‘31 December 2022’. Thus, when the Extension Order comes into operation on 1 January 2022, a qualifying instrument executed on or after 1 July 2021 but no later than 31 December 2022 will qualify for exemption from stamp duty.
Our summary of the salient provisions of the Exemption Order can be accessed
here.
Comments
The extension of the exemption from stamp duty under the Exemption Order is welcomed as it will most certainly assist businesses which are seeking to restructure or reschedule their existing loans or financing due to continuing financial difficulties arising from the Covid-19 pandemic.
Alert prepared by Lee Ai Hsian (Partner) of the Banking and Finance Practice of Skrine.