Implementation of Stamp Duty Self-Assessment System (SDSAS)
Effective 1 January 2026, Malaysia has implemented Phase 1 of the Stamp Duty Self-Assessment System (SDSAS). Under this system, taxpayers are required to self-assess, declare, and pay stamp duty when submitting instruments through the e-Duti Setem (e-DS) system via the MyTax portal, instead of waiting for an official assessment from the IRB.
| Phase | Effective Date | Types of Instruments |
|---|---|---|
| Phase 1 | From 1 Jan 2026 | Rental/ lease, security and general stamping |
| Phase 2 | From 1 Jan 2027 | Transfer of real property (without Valuation and Property Services Department (JPPH) valuation) |
| Phase 3 | From 1 Jan 2028 | Other instruments not in Phase 1 and Phase 2 |
This shift places greater responsibility on duty payers to identify chargeable instruments, compute the appropriate stamp duty, and ensure timely submission and payment.
Increased Enforcement and Compliance Expectations
With the transition to the self-assessment regime, the IRB is expected to intensify audit and compliance monitoring of stamping practices to ensure accurate reporting and payment of stamp duty. Companies are therefore encouraged to review their existing agreements and internal processes to ensure that all instruments subject to stamp duty have been properly stamped.
Special Voluntary Disclosure Programme (“SVDP”) – Deadline 30 June 2026
To facilitate the transition to the new system, the Government has introduced a SVDPfor stamp duty, which runs from: 1 January 2026 to 30 June 2026
This programme provides taxpayers with an opportunity to regularise any unstamped or under-stamped instruments with reduced exposure to penalties before stricter enforcement begins.
SVDP applies to all instruments executed from 1 Jan 2023 to 31 Dec 2025 which:
- have not been submitted from stamping; or
- have been submitted for stamping before 1 Jan 2026 but in respect of which stamp duty has not been paid.
Both stamping and payment of duty must be made within the implementation period. Late payment penalty will be imposed if an instrument is submitted for assessment within the implementation period but is not stamped within the said period.
All instruments stamped under the SVDP will not be subject to stamp duty audit. However, the duty payer is not exempted from audit on instruments that are not stamped under the SVDP.
Given the limited window available, businesses are encouraged to conduct an internal review of historical agreements and transactions to identify potential stamp duty exposures.
Should you require assistance in reviewing your agreements or participating in the SVDP before the 30 June 2026 deadline, please feel free to contact us and we would be pleased to support you.