Contract Note for Sale and Purchase Transaction of Exchange-Traded Fund and Purchase Transaction for Structured Warrant Exempted from Stamp Duty
29 December 2025
A contract note for:
- the sale and purchase transaction of exchange traded fund; and
- the purchase transaction of structured warrant,
approved by the Securities Commission Malaysia under the Capital Markets and Services Act 2007 in Bursa Malaysia Securities Berhad will be exempted from stamp duty under the Stamp Duty (Contract Note for Sale and Purchase Transaction of Exchange Traded Fund and Purchase Transaction of Structured Warrant) (Exemption) Order 2025 [P.U.(A) 450/2025] (“Exemption Order”).
To qualify for stamp duty exemption under the Exemption Order, the contract note must be executed on or after 1 January 2026 but not later than 31 December 2028.
For the purposes of the Exemption Order:
- “exchange-traded fund” refers to a listed fund structured as a unit trust scheme, whose principal aim is to: (a) track; (b) deliver multiples of; or (c) deliver opposite of, the performance of an index or a benchmark using a passive investment strategy1; and
- “structured warrant”, individually or collectively, and as the context requires, refers to call warrants, put warrants, bull equity-linked structures or such other structures as may be specified in the listing requirements from time to time2.
Comments
The Exemption Order gives effect to the proposals set out in Appendices 18 and 19 of the Tax Measures that accompanied the 2026 Malaysian Budget Speech on 10 October 2025. The exemptions will help to promote the competitiveness and growth of the Malaysian capital market and encourage investments in alternative investment instruments.
Alert by Phua Pao Yii (Partner) of the Corporate Practice of Skrine.
1 Guidelines on Exchange-Traded Funds.
2 Issuer Eligibility Guidelines – Structured Warrants.