As a measure to lessen the burden on borrowers who wish to obtain refinancing to finance their business and trade activities, it is proposed that refinancing instruments with respect to term loans be exempt from stamp duty where the following conditions are met :

  1. the refinancing facility represents a term loan for the purpose of funding the original loan (refinancing for the purpose of funding an overdraft facility and for working capital are not eligible for such exemption);

  2. the exemption is limited to funding the balance of the original loan; and

  3. for a syndicated loan, the amount of refinancing loan given by each bank has to be stipulated on the refinancing loan agreement.

This proposal is to be effective from October 24, 1998.

   



|Home|Contents|

This report is reproduced with permission from Kassim Chan Tax Services Sdn Bhd (36421-T) and Deloitte Touche Tohmatsu Tax Services Sdn Bhd (151497-P). 7th Floor, 3 Cangkat Raja Chulan 50200 Kuala Lumpur, Malaysia or P.O.Box 11151, 50736 Kuala Lumpur, Malaysia.
Telephone: (603) 232 0711, Facsimile: (603) 2304746, (603) 230 0585

No part of this report may be reproduced in any form without the prior consent of Kassim Chan Tax Services Sdn Bhd and Deloitte Touche Tohmatsu Tax Services Sdn Bhd.

Another Malaysian resource site designed and hosted by MIR Communications Sdn Bhd.