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 rescheduling1
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
’) has been extended until 31 December 2024
under the Stamp Duty (Exemption) (No. 11) 2021 (Amendment) Order 2023
[P.U.(A) 141/2023] (‘Amendment Order
’) which came into operation retrospectively on 1 January 2023.2
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 2022.
The Amendment Order amends paragraph 2(1) of the Exemption Order by replacing the words ‘31 December 2022’ with the words ‘31 December 2024’. Thus, a qualifying instrument executed on or after 1 July 2021 but no later than 31 December 2024 will qualify for exemption from stamp duty under the Exemption Order, provided that the conditions stipulated in the Exemption Order are satisfied. Our summary of the salient provisions of the Exemption Order can be accessed here
The extension of the exemption from stamp duty under the Exemption Order will most certainly be welcomed by businesses that are still struggling to recover from the economic downturn caused by the Covid-19 pandemic as it will reduce the cost of restructuring or rescheduling their existing loans or financing.
Alert prepared by Lee Ai Hsian (Partner) of the Banking and Finance Practice of Skrine.
For the purposes of the Exemption Order, “restructuring or rescheduling
” means any modification made to the existing repayment terms and conditions of a loan or financing agreement pursuant to a concession provided by a financial institution due to the inability of the borrower or customer to comply with the existing repayment schedule consequent to deteriorating financial conditions.