20 December 2021
On 9 November 2021, the Finance Bill 2021 (“Bill”) was tabled for first reading in Malaysia’s Lower House of Parliament. The Bill contains amendments to, among other things, the Income Tax Act 1967, the Real Property Gains Tax Act 1976, the Stamp Act 1949, the Petroleum (Income Tax) Act 1967, the Labuan Business Activity Tax Act 1990, the Promotion of Investments Act 1986, the Finance Act 2012 and the Finance Act 2018. The Bill has been set for a second reading.
In particular, amendments to the Stamp Act 1949 pursuant to the Bill include provisions for:
- an avenue for the refund of excess payment and finality of assessment by court order if the court is satisfied that the Collector of Stamp Duties has made an erroneous assessment;
- the allowance for refund for spoiled or misused stamps under certain prescribed circumstances; and
- the extension of the use of electronic medium to, among other things:
- to seek review under a new section 38A by the Collector of Stamp Duties of an assessment; and
- to obtain a refund of stamp duty paid under certain circumstances, including where stamps used are spoiled or misused.