KUALA LUMPUR: To help in reducing financing cost and improve cash flow, the Ministry of Finance (MoF) has proposed to extend the 100 per cent stamp duty exemption on restructuring and rescheduling agreements for loans/financing for a two-year period.
According to the ministry, at present, the 100 per cent stamp duty exemption is given for restructuring and rescheduling agreements for loans/financing between borrowers and financial institutions that are transacted from Jan 1, 2022 to Dec 31, 2022 .
“The MoF has proposed to extend the stamp duty exemption from Jan 1, 2023 till Dec 31, 2024,” it said in a tax appendix issued in conjunction with the tabling of Budget 2023.
The ministry has also proposed to extend the tax incentive for three years from Jan 1, 2024 till Dec 31, 2026, to encourage more angel investors to contribute to economic activities.
Currently, angel investors who invest in investee companies in the form of ordinary shares are eligible for tax exemption equivalent to the amount of investment.
Meanwhile, to attract the interest of multinational companies to carry out trading activities and make Malaysia a regional distribution hub, the MoF has proposed that tax incentive be extended for a three-year period from Jan 1, 2023 to Dec 31, 2025.
To-date, companies that carry out trading activities for export purposes are eligible to be considered for Global Trading Centre tax incentive at an income tax rate of 10 per cent for five years and renewable for a five-year period.
This tax incentive is for applications received by the Malaysian Investment Development Authority from Jan 1, 2021 till Dec 31, 2022. - Bernama