Stamp duty on contract notes for trading in shares to be capped at RM1,000

Stamp duty on contract notes for trading in shares to be capped at RM1,000

KUALA LUMPUR: Bursa Malaysia Bhd has lauded the Ministry of Finance's (MoF) decision with regards to the remittance of stamp duty on contract notes for the trading of listed shares on Bursa Malaysia, which will be capped at RM1,000.

The exchange operator said MoF recently announced that the stamp duty is set at RM1.50 for every RM1,000 or fractional part of RM1,000 of the value of the contract note of any shares or stock and that the stamp duty is to be capped at RM1,000.

The policy decision shall be valid from Jan 1, 2022 to Dec 31, 2026.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the ministry’s agility in responding to market operating conditions is very much appreciated.

"This moderated approach to the changes on stamp duty exemplifies the government’s attentiveness to industry feedback, and in managing the delicate balance between tax collection and nurturing growth in our capital market,” he said.

Meanwhile, chairman Tan Sri Abdul Wahid Omar said as a market regulator, Bursa Malaysia is committed to continuously engage and collaborate with all market participants, towards creating an attractive, vibrant, and sustainable marketplace.

"The move by MoF maintains our market’s regional competitiveness and attractiveness. The exchange together with the MoF will continuously ensure that our marketplace remains an attractive destination for investors and issuers to invest and raise funds,” he said.

Bursa Malaysia added that participating organisations have been informed about the matter and investors are advised to consult their brokers if they have questions on the new stamp duty amendments. - Bernama

https://www.thestar.com.my/business/business-news/2021/12/30/stamp-duty-on-contract-notes-for-trading-in-shares-to-be-capped-at-rm1000