Capital market Sectors:
Products & Services

Recipient

Incentives

Reference/ Reference Legislation (if any)

Bonds Investor
  • Interest paid or credited to any individual, unit trust and listed closed-end fund in respect of debentures (exclude convertible loan stock) approved by the Securities Commission (SC) is exempt from income tax;
Income Tax Act 1967 – Schedule 6, Section 35
  • Interest paid or credited to non-resident companies in respect of ringgit denominated Islamic securities or debentures (exclude convertible loan stock) approved by the SC is exempt from income tax;
Income Tax Act 1967- Schedule 6, Section 33A
Issuer
  • All instruments relating to the issue and transfer of private debt securities which issue has been approved by the SC are exempt from stamp duty with effect from 1 July 2000.
Stamp Duty Act 1949 – Stamp Duty (Exemption) (No. 23) Order 2000
  • All instruments for the purpose of securitisation approved by the SC are exempt from stamp duty with effect from 1 January 2001.
Stamp Duty Act 1949 – Stamp Duty (Exemption) (No. 12) Order 2001
  • Real property gains tax in respect of chargeable gains accruing on the disposal of any chargeable assets-
    (a) to or in favour of a special purpose vehicle; or
    (b) in connection with the repurchase of the chargeable assets, to or in favour of the person from whom those assets were acquired,
    is exempted for the purpose of securitization transaction.
Real Property Gains Tax Act 1976 – Real Property Gains Tax (Exemption) Order 2001
  • Tax-neutral framework in computing income tax treatment for originator and special purpose vehicle involved in a securitisation transaction which is approved by the SC
Announced in Federal Budget 2004