In brief
The Inland Revenue Board of Malaysia (IRB) has announced a waiver of late stamping penalties under a Special Voluntary Disclosure Program (SVDP) for stamp duty, following enhanced enforcement and the move to a self‑assessment stamp duty regime. Under the SVDP, instruments executed between 1 January 2023 and 31 December 2025 will qualify for a full waiver of late stamping penalties if the stamp duty is paid between 1 January 2026 and 30 June 2026.
In depth
Stamp duty – Special Voluntary Disclosure Program
- Under the Stamp Act 1949, agreements must be stamped within 30 days from the date of execution (if executed in Malaysia), or within 30 days from first receipt in Malaysia (if executed overseas) (“Prescribed Period”).
- On 5 January 2026, the Prime Minister (also the Finance Minister) announced a SVDP for stamp duty.
- The IRB subsequently announced on 28 January 2026 that agreements executed between 1 January 2023 and 31 December 2025 are eligible for a full waiver of late stamping penalties, provided they are submitted for stamping and the corresponding stamp duty is paid between 1 January 2026 and 30 June 2026 (“SVDP Period”).
- The SVDP is not available in cases of fraud, i.e., involving deception or false representation with the intention to evade payment of stamp duty.
- Instruments stamped under the SVDP will not be subject to audit.
- Any penalties reflected in the Stamp Duty Return Form or Notice of Assessment will be automatically waived upon payment, with no further action required.
When are late payment penalties waived?
|
Date of submission for stamping |
Stamp duty payment status |
Penalty outcome |
|
Before 1 January 2026 |
Paid (penalty included) |
Not eligible for penalty remission under SVDP |
|
Before 1 January 2026 |
Submitted for stamping but stamp duty is not yet paid |
No penalty if payment is made within the SVDP Period |
|
1 January 2026 – 30 June 2026 |
Payment made within SVDP Period |
No penalty |
Late payment penalties outside the SVDP window
|
Time period |
Penalty rate |
|
If stamped within three months from the Prescribed Period |
RM 50 or 10% of the stamp duty (whichever is higher) |
|
If stamped after three months from the Prescribed Period |
RM 100 or 20% of the stamp duty (whichever is higher) |
What does this mean for businesses?
It would be timely for companies to consider rectifying any stamp duty non-compliances under the SVDP. Where the stamp duty exposure is large, the potential savings on penalties may be significant if disclosure is made under the SVDP. Given the short SVDP window, quick assessment and actions will be required.
Download the infographics of the Stamp Duty: Late Payment Penalty Waiver.
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Wen Ying Tan and Bridget Chua, Associates, have contributed to this legal update.
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