Malaysia | SME Merger and Acquisition instruments exempt from stamp duty

The Prime Minister announced that starting from 1 July 2020 until 30 June 2021, eligible SMEs will be exempted from paying stamp duty on instruments for Mergers & Acquisitions (“M&A instruments”), including Contracts or Agreements for sale or lease of properties (including land, building, machinery and equipment); Instrument of Transfer and Memorandum of Understanding; Loans or Financing Agreement; and First Tenancy Agreement.

To be eligible, SMEs must:

• Be 100% Malaysian owned; and
• have annual sales turnover of less than RM50 million or full-time employees of less than 200, as per the definition of SMEs in the manufacturing sector; or
• have annual sales turnover of less than RM20 million or full-time employees of less than 75, as per the definition of SMEs in the services sector.

Applicants must obtain the certification of SME Status and 100% Malaysian ownership status in order to verity the SME status.

The announcement as well as Procedures and Guidelines, and an FAQ can be found here.