Transaction Costs in Trading of Shares -

Stamp Duty & Service Tax

 

Please be informed of the following update which will take effect from 1 January 2022 with regard to trading of shares listed on Bursa Malaysia.
 
1) The Stamp Duty Fee and Capping Amount per contract will now vary depending on the type of securities traded2
 
Type of Securities Stamp Duty (%)1 Capping (RM)
Underlying Shares (aka mother shares) 0.15% 1,000
Preference Shares 0.15% 1,000
Loan Stocks 0.15% 1,000
Exchange Traded Bond 0.15% 1,000
Rights 0.10% 200
Warrants 0.10% 200
REIT / TRUST and Closed Ended Fund 0.10% 200
Exchanged Traded Fund (ETF) Exempted Not Applicable

 

2) Exemption of Service Tax (6%) on brokerage fee related to trading of shares listed on Bursa Malaysia3
 
Reference
RM1.50 or RM1.00 for every RM1,000.00 (or fractional part) of the transaction value of any shares or stocks
Reference is made to Bursa Malaysia’s Participating Organisations’ Circular No. G37 of 2021
With reference to Minister of Finance Budget Speech 2022, the Service Tax exemption on brokerage service is only applicable to trading of shares listed on Bursa Malaysia)
 
For more information, you may visit Bursa Malaysia’s website. Click here.
 
If you have further enquiries, please contact your Dealer’s Representative. Alternatively, you may contact or email our Customer Service. Click here for the contact details.
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