The Forest City Special Financial Zone (FCSFZ) has reached a major milestone with the official gazettement of its comprehensive tax incentive package. A total of 11 subsidiary legislations were published in the Federal Government Gazette on 3^rd October 2025, setting out specific income tax, stamp duty and real property gain tax (RPGT) exemption and remission that applicable to Pulau 1, Forest City.

These gazetted instruments form the legal foundation of the FCSFZ’s fiscal framework offering targeted incentives to single family office, financial institutions, digital economy entities and individual property purchasers.

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Stamp Duty (Exemption) Order Related to Single Family Fund Company

P.U.(A) 352/2025 Stamp Duty (Single Family Fund Company) (Pulau 1 of Forest City Special Financial Zone) (Exemption) Order 2025

A Single Family Fund Company refers to a company incorporated under the Companies Act 2016 and resident in Malaysia, which is wholly owned, directly or indirectly, by a member of a single family, which operate in Pulau 1 of FCSFZ and is established solely for the purpose of holding the asset and investment activity for the interest of members of a single family[1].

This Order grants a full stamp duty exemption in respect of all instruments of transfer of any qualifying asset for the establishment of the Single Family Fund Company or also known as Single Family Office Vehicles (SFOV) within Pulau 1 of FCSFZ.

This exemption applies only to instruments executed between a Single Family Fund Company and the following parties:

1. 1. Any family member within the same family lineage, including spouse, biological child, stepchild, and adopted child in accordance with any written law; or
2. 2. Any company or trust body wholly owned, directly or indirectly, by member of the same family.

To qualify, the instrument of transfer must be executed between from 1^st September 2024 till 31^st December 2034, and within 1 year from the date of the certification letter issued by the Security Commission Malaysia (SC). The SC’s certification letter must be attached to the instrument of transfer when it is presented for stamping.

It is important to note that this is a one-time stamp duty exemption, applicable only at the point of SFOV establishment and the exemption covers asset transfer specifically listed in the application submitted to the SC only.[2]

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Stamp Duty (Exemption) Order Related to Individual

P.U.(A) 354/2025 Stamp Duty (Instrument of Transfer in Relation to Individual) (Pulau 1 of Forest City Special Financial Zone) (Remission) Order 2025

P.U.(A) 353/2025 Stamp Duty (Instrument of Loan or Financing Agreement in Relation to Individual) (Pulau 1 of Forest City Special Financial Zone) (Remission) Order 2025

These 2 Orders collectively grants a 50% remission on stamp duty chargeable on the instrument of transfer and the instrument of loan or financing agreements executed by individual(s) with the Developer or approved lenders in respect of purchase of completed residential or commercial units located within Pulau 1 of FCSFZ.

Both Orders apply only where all the following conditions are satisfied:

1. 1. The Sale and Purchase (SPA) for the units is executed between a developer and individual purchaser(s);
2. 2. The SPA is executed from 1^st September 2024 till 31^st December 2034;
3. 3. The property concerned is a completed unit whose construction was completed before 1^st September 2024;
4. 4. The remission cannot apply to the same unit if an earlier SPA for that unit had been executed before 1^st September 2024 and later cancelled by the same buyer; and
5. 5. The Iskandar Regional Development Authority verification is mandatory to confirm the above compliance before the remission can be applied at the stamping stage.

 

Stamp Duty (Remission) Order Related to Qualifying Person

P.U.(A) 356/2025 Stamp Duty (Instrument of Transfer in Relation to Qualifying Person) (Pulau 1 of Forest City Special Financial Zone) (Remission) Order 2025

P.U.(A) 355/2025 Stamp Duty (Instrument of Loan or Financing Agreement in Relation to Qualifying Person) (Pulau 1 of Forest City Special Financial Zone) (Remission) Order 2025

While P.U.(A) 353/2025 and P.U.(A) 354/2025 applied to individua(s), these 2 Orders extend similar 50% stamp duty remission to qualifying person purchasing completed residential or commercial units within Pulau 1 of FCSFZ.

A qualifying person includes the following categories that broadly covering regulated financial, capital market and digital economy entities :-

• a. Licensed person under section 10 of the Financial Services Act 2013 or Islamic Financial Services Act 2013;
• b. Companies holding a Capital Market Services Licence under the Capital Markets and Services Act;
• c. Recognized market operator registered under section 34 of the Capital Markets and Services Act 2007 other than an individual;
• d. Registered person registered under section 76 of the Capital Markets and Services Act 2007 other than an individual;
• e. Person providing capital market services registered under section 76A of the Capital Markets and Services Act 2007 other than an individual;
• f. Single family fund company verified by the Securities Commission Malaysia;
• g. Financial technology company, insurance technology company, regulatory financial technology company or Islamic financial technology company with MSC Malaysia Status or Malaysia Digital Status, verified by Malaysia Digital Economy Corporation Sdn. Bhd.;
• h. Payment system operator established or incorporated in a foreign jurisdiction approved under section 11 of the Financial Services Act 2013 or section 11 of the Islamic Financial Services Act 2013 to operate a payment system in Pulau 1 of Forest City Special Financial Zone; or
• i. Centralized services entity providing financial global business services with MSC Malaysia Status or Malaysia Digital Status, verified by Malaysia Digital Economy Corporation Sdn. Bhd.

Both Orders apply only when the following conditions are satisfied: –

1. 1. The Sale and Purchase (SPA) for the units is executed between a developer and qualifying person;
2. 2. The SPA is executed from 1^st September 2024 till 31^st December 2034;
3. 3. The property concerned is a completed unit whose construction was completed before 1^st September 2024;
4. 4. The remission cannot apply to the same unit if an earlier SPA for that unit had been executed before 1^st September 2024 and later cancelled by the same qualifying person; and
5. 5. The Iskandar Regional Development Authority verification is mandatory to confirm the above compliance before the remission can be applied at the stamping stage.

Collectively, these Orders mirror the individual(s) purchaser incentives but are tailored for regulated and institutional purchaser such as licensed financial institutions, capital market entities and family office structures.

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Real Property Gain Tax (RPGT) Exemption That Relevant to Non-Citizen & Non-Permanent Resident

P.U.(A) 358/2025 Real Property Gains Tax (Pulau 1 of Forest City Special Financial Zone) (Exemption) Order 2025

The Minister of Finance has exempted any individual who is not a Malaysia citizen or permanent resident from the application of Schedule 5 of the RPGT Act 1976 in respect of the disposal of real property located within Pulau 1 of FCSFZ, when such disposal take place: –

• a. In the 4^th year after acquisition;
• b. In the 5^th year after acquisition; or
• c. In the 6^th year or any subsequent year after acquisition

Accordingly, RPGT exemption will be imposed on the chargeable gain arising from disposals made in or after the 4^th year of ownership, subject to the conditions set out in the Order.

Comparison with Ordinary RPGT Regime for non-citizen and non-permanent resident: –

To qualify for the exemption, the transaction requirements for eligibility: –

• 1. The SPA for disposal must be executed between 01^st September 2024 to 31^st July 2034 and duly stamped before 1^st September 2034.
• 2. For conditional contracts that require Federal Government or State Government approval, must be executed between 01^st September 2024 to 31^st July 2034 and the approval must be obtained on or after 1^st September 2024.

Even with the exemption, please note that non-citizen and non-permanent resident sellers remain obligated to comply with all filling and reporting requirements under the RPGT Act.

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[1] Income Tax (Single Family Office Incentive Scheme) (Pulau 1 of Forest City Special Financial Zone) (Exemption) Order 2025, Rule 2, Interpretation.

[2] https://www.sc.com.my/regulation/guidelines/single-family-office-sfo-incentive-scheme, Form FO-4_Application Form for Stamp Duty Exemption in Relation to Asset Transfer for SFO Incentive Scheme_Oct 2025

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About the authors

Janice Ooi Jia Ming
Senior Associate
Corporate
Halim Hong & Quek
jmooi@hhq.com.my
◦
Jenson Tan Zhen Chao
Associate
Corporate
Halim Hong & Quek
jensontan@hhqjb.com.my

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