Malaysia’s government is providing a stamp duty exemption to Malaysian-owned SMEs for merger and acquisition (M&A) activities to help building up the capacity of local companies and supporting local SMEs who have been greatly affected by the current Covid-19 economic landscape.
It’s an effort by the Ministry of Entrepreneur Development and Cooperatives (MEDAC) through SME Corp Malaysian, together with the Inland Revenue Board of Malaysia and the Companies Commission of Malaysia.
The stamp duty exemption incentive was to created to help SMEs in all sectors and build the capacity of local companies
Its minister, Datuk Seri Wan Junaidi Tuanku Jaafar said the incentive was created to help Malaysian-owned SMEs in all sectors and build the capacity of local companies. The stamp duty exemption incentive is also to encourage mergers among SMEs to form new companies or the acquisition of SMEs by others SMEs to become bigger business entities – which through legal instruments and contracts.
The stamp duty exemption for M&A activities include the cost of Contracts or Agreements for the sale or lease of properties – including land, buildings, machinery and equipment; Instruments of Transfer and Memorandum of Understanding; Loan or Financing Agreement and the First Lease Agreement.
SMEs can apply from July 2020 until 30 July 2021
SMEs can apply for this incentives if they perform M&A activities in the period between July 2020 until June 2021.
Wan Junaidi also stressed that the government views this effort as a medium to help strengthen SME capacity and prevent the hollowing out of companies as a result of the Covid-19 pandemic and the subsequent lockdowns that followed. The overall goal however is to enhance access to funds and valuable assets for new developments.
This incentive by the government also provides an opportunity for new business entities to gain additional knowledge, skills and quality staff as well as to lower costs. SMEs that wish to apply for the stamp duty exemption can do it before 31 July 2021. For more information, please go to MEDAC website.
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