Finance Act 2006 Chapter iV — AMENDMENTS TO THE STAMP AcT 949

commencement of amendments to the Stamp Act 1949

s 39

This chapter is deemed to have come into operation on  September 006.

Amendment of section 2

s 40

The Stamp Act 949, which is referred to as the “principal Act” in this chapter, is amended in section  by inserting after the definition of “settlement” the following definition: ‘ “small and medium enterprise” means— (a) in relation to the manufacturing, manufacturing related services and agro-based industries sectors, an enterprise with full-time employees not exceeding one hundred and fifty people or annual turnover not exceeding twentyfive million ringgit; and Finance 3 (b) in relation to the services, primary agriculture, and information and communication technology sectors, an enterprise with full-time employees not exceeding fifty people or annual turnover not exceeding five million ringgit;’. deletion of section 5A

s 41

The principal Act is amended by deleting section 5a.

Amendment of section 7

s 42

Section 7 of the principal Act is amended by substituting for subsection () the following subsection: “() Subject to any rules made under paragraph 8(b), all duties with which any instruments are chargeable under this Act shall be paid, and payment shall be indicated on such instrument, by means of an adhesive stamp or by affixing an official receipt to such instrument.”.

Amendment of section 9

s 43

Section 9 of the principal Act is amended— (a) in subsection (3), by inserting after the word “books” the words “, records and documents”; and (b) by inserting after subsection (3) the following subsection: “(4) For the purpose of subsection (3), the banker, dealer or insurer shall keep and retain the books, records and documents in connection with the issue of such cheques, contract notes or policies of insurance for a period of seven years from the year in which such cheques, contract notes or policies of insurance are issued.”.

Amendment of section 57

s 44

Section 57 of the principal Act is amended— (a) by deleting paragraph (c); and 4 Laws of Malaysia Act 661 (b) by substituting for paragraph (e) the following paragraph: “(e) the stamp on any promissory note which from any omission or error has been spoiled or rendered useless, although the same, being a promissory note, may have been delivered to the payee, provided that another completed and duly stamped promissory note, is produced identical in every particular except in correction of the error or omission, with the spoiled note;”.

Amendment of section 80

s 45

Section 80 of the principal Act is amended— (a) in subsection (a)— (i) in paragraph (i), by inserting after the word “instrument” the words “or all instruments in relation to any scheme”; and (ii) in paragraph (ii), by substituting for the words “instrument is” the words “instrument or all instruments in relation to any scheme are”; and (b) in subsection (3), by inserting after the words “or ()” the words “or any exemption, reduction or remission made under subsection (a)”.

Amendment of First Schedule

s 46

item 7 of the First Schedule to the principal Act is amended by substituting for subitem (a)(i) the following subitem: “(i) where the loan is to a small and medium enterprise or financing is provided to a small and medium enterprise according to the syariah— For an amount not exceeding RM0.50 for every RM1,000 or RM250,000 of the aggregate fractional thereof loans or of the aggregate financing under the syariah in a calendar year Finance 5 For each additional RM1,000 RM2.50 for every RM1,000 or not exceeding RM1,000,000 fractional thereof For each additional RM1,000 RM5.00”. or part thereof