In brief
Malaysia has extended the implementation period for the Special Voluntary Disclosure Programme (SVDP) for stamp duty, originally scheduled to run from 1 January 2026 to 30 June 2026, by a further six months, from 1 July 2026 to 31 December 2026 ("SVDP Period"). The existing eligibility conditions for participation in the SVDP remain unchanged.
As outlined in our earlier client alert on the SVDP here, the programme allows taxpayers to regularise eligible unstamped or late‑stamped instruments with a full waiver of late stamping penalties. This extension provides additional time for taxpayers to increase compliance levels and to complete the stamping process and settle the relevant duty for relevant instruments.In more detail
On 26 June 2026, with less than a week remaining before the programme’s original expiry on 30 June 2026, the Ministry of Finance approved a six-month extension for the implementation of SVDP for stamp duty, from 1 July 2026 to 31 December 2026.
Under the SVDP, a full waiver of late stamping penalties is available for instruments executed between 1 January 2023 and 31 December 2025, provided that:
- The instruments are submitted for stamping; and
- The applicable stamp duty is paid,
within the SVDP Period.
As previously highlighted, instruments stamped under the SVDP will not be subject to audit, and any penalties reflected in the Stamp Duty Return Form or Notice of Assessment are waived automatically upon payment, without the need for a separate application. The programme does not apply in cases involving fraud, including deception or false representation with the intention of evading stamp duty.
Penalty treatment under the SVDP
For completeness, the penalty treatment under the SVDP is summarised below:
| Date of Submission for Stamping | Stamp Duty Payment Status | Penalty |
| Before 1 January 2026 | Paid, including penalty | Not eligible for penalty remission under SVDP |
| Stamp duty has not yet been paid | No late stamping penalty if payment is made by 31 December 2026 | |
| Between 1 January 2026 and 31 December 2026 | Stamp duty is paid by 31 December 2026 | No late stamping penalty |
Penalty treatment outside the SVDP
The standard late stamping penalties under the Stamp Act 1949 would continue to apply to instruments that fall outside the scope of SVDP, namely:
| Period of Delay in Stamping | Penalty |
| Up to three months | RM 50 or 10% of the stamp duty (whichever is higher) |
| Exceeding three months | RM 100 or 20% of the stamp duty (whichever is higher) |
However, under the Stamp Duty Audit Framework, it is also possible to apply for a penalty waiver to remit the penalty to 10%, upon application to the Stamp Office under the general voluntary disclosure program. The remission of penalty is discretionary upon the approval of the Stamp Office based on a case-by-case basis and the application can only be submitted in the absence of any stamp duty audit.
What this means for you
The extension provides businesses with a further window to review their historical stamp duty position and regularise compliance for any eligible unstamped or late-stamped instruments executed between 1 January 2023 and 31 December 2025.
In practical terms, businesses should:
- Identify any unstamped or late stamped instruments (including intergroup agreements, commercial contracts and financing documents);
- Assess the applicable stamp duty exposure; and
- Ensure completion of stamping and payment by 31 December 2026 to benefit from the penalty waiver.
Given the recent introduction of the stamp duty self‑assessment regime and the Inland Revenue Board’s increased audit focus, timely regularisation during the SVDP Period remains a key risk‑management step.
Chris Deng, Chambering Pupil, has contributed to this legal update.
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