Stamp Duty Voluntary Disclosure – Until 30th June 2026

The Stamp Duty Voluntary Disclosure (SD-VD) program rolled out by the Malaysian Inland Revenue Board (LHDN) on 27th January 2026 allows for instruments signed between 1 January 2023 and 31 December 2025 to be submitted for stamping without any penalty – provided the duty is paid by 30 June 2026.

Without the SD-VD program, failure to pay stamp duty for instruments executed prior to 1 January 2026 attracts penalty of 20% of the unpaid duty, subject to a minimum of RM100 per instrument.

SD-VD is not applicable for instruments executed prior to 1 January 2023 or after 31 December 2025. However, pursuant to an earlier announcement, for any stamp duty return form submitted during the calendar year 2026, there would be no penalty in respect of any undercharged duty in the stamp duty return form.

The penalty waiver during the SD-VD program period is automatic, i.e. there is no need to make any application for the penalty waiver. Any penalty imposed in the notice of assessment would be automatically waived provided the duty is paid by 30 June 2026.

LHDN has assured in writing that the instruments in the SD-VD program would not be audited, but bear in mind that:

1. The penalty waiver does not apply to cases where there are elements of fraud, such as instances where there is intention to avoid payment of stamp duty.
2. Companies participating in the voluntary disclosure are not precluded from being audited altogether. The entities may still be audited with regards to other instruments that are not submitted for stamping per the SD-VD program.

The contents of this write-up are of generic nature. Strictly no liability assumed. For case-specific consultancy and professional support, do reach out to your contact point at TRATAX or email thenesh@tratax.my