A chargeable instrument must be stamped with the Inland Revenue Board of Malaysia (“HASiL”) within 30 days from the date of its execution in Malaysia, or within 30 days from the date it is first received in Malaysia if it is executed abroad. Failure to stamp within the prescribed period of 30 days will attract late stamping penalty under the Stamp Act 1949, calculated based on the length of delay as follows:
- RM50 or 10% of the deficient duty (whichever is higher), if stamped within 3 months of the prescribed period; or
- RM100 or 20% of the deficient duty (whichever is higher), if stamped after 3 months from the prescribed period.
The Malaysian Prime Minister recently announced a Stamp Duty Special Voluntary Disclosure Programme (“PKPS”) on 5 January 2026, which grants full waiver of penalties arising from late stamping. In line with this initiative, the HASiL has released relevant guidelines to provide public guidance to promote voluntary compliance.
To help you navigate the PKPS, we have prepared a comprehensive Q&A guide below explaining how this PKPS works and how you can benefit from it.
A. Introduction
Q: What is PKPS 2026?
A: It is a special program initiated by the government to encourage voluntary compliance by offering a full penalty waiver for (i) any late stamping of instruments and (ii) overdue payment of stamp duty by the public.
Q: When is the program period?
A: The program lasts for an interim period of 6 months from 1 January 2026 to 30 June 2026. Duty payers must submit the instruments for stamping and pay the applicable stamp duty during this program period to be eligible for the full penalty waiver.
Q: Who can participate in PKPS?
A: PKPS is open to all duty payers, including non-citizens.
B. Eligibility and Exclusions
Q: Which instruments are eligible for waiver?
A: PKPS applies to all kinds of stampable instruments or agreements executed between 1 January 2023 and 31 December 2025 that have not been stamped or for which the stamp duty has not been paid. For instruments that have been executed prior to 1 January 2023 and needed to be exhibited or admitted as evidence for court purposes, they are still required to be stamped, and subject to late penalty.
Q: What instruments do not qualify for waiver?
A: PKPS does not apply to:
(i) Cases involving fraud or forgery with an intention to avoid stamp duty;
(ii) Instruments signed and dated before 1 January 2023 or after 31 December 2025;
(iii) Cases where the duty and penalty had already been paid in full before 1 January 2026;
(iv) Instruments submitted for stamping beyond the PKPS’s program period; and
(v) Instrument submitted for stamping within the PKPS’s program period, but stamp duty is paid after such period.
Q: Am I still eligible to waiver if I already submitted my document for stamping before 2026 but haven’t paid the duty?
A: You are still eligible for the penalty waiver, provided you make the full stamp duty payment within the program period (1 January 2026 to 30 June 2026).
C. Application and Payment
Q: How do I apply for the penalty waiver?
A: Applications must be made online by submitting the instrument for stamping via the e-Stamp Duty System. Manual application will not be accepted.
Q: Do I need to submit any appeal to get the penalty waived?
A: No. There is no need to submit a penalty appeal application. The waiver is automatic as long as the stamp duty is paid within the program period.
Q: Will the BNDS or Notice of Assessment still show the penalty amount?
A: Notwithstanding that you are eligible to the waiver, the penalty amount will still be displayed on the Stamp Duty Declaration Form (BNDS) or Notice of Assessment (as the case may be). During the payment process, this amount will be waived automatically, and you are only required to pay for the actual stamp duty amount.
Q: What happens if I only pay the stamp duty after 30 June 2026?
A: If you fail to pay stamp duty by 30 June 2026, your eligibility for the waiver will be withdrawn, and full late payment penalties will be re-imposed.
D. Miscellaneous
Q: Will HASiL still audit me if I participate in this program?
A: Instruments stamped under the PKPS will not be audited. However, HASiL clarifies that this program does not exempt you from being audited on other instruments that remain unstamped or were not stamped in this program.
Key Takeaway
Given the specific program period in place, duty payers are strongly encouraged to submit stamping applications as early as possible within the program period, to ensure sufficient time for HASiL to issue assessment notices (if applicable) and for stamp duty payment to be completed before the program ends. Failing which, you risk losing the penalty waiver.
Sources:
- https://www.hasil.gov.my/media/fyxkb34m/garis-panduan-operasi-layanan-khas-penalti-di-bawah-seksyen-47a-akta-setem-1949-bagi-program-khas-pengakuan-sukarela-duti-setem-2026.pdf
- https://www.hasil.gov.my/media/4zvbflbl/20260128-kenyataan-media-hasil_pkps-duti-setem-2026.pdf
- https://www.hasil.gov.my/media/ph0foa2w/soalan-lazim-faq-pengecualian-penalti-program-pengakuan-khas-sukarela-pkps-duti-setem-2026.pdf
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This article was written by Chin Wan Xin (Associate) from Donovan & Ho’s corporate practice.
Our corporate practice group advises on corporate acquisitions, restructuring exercises, joint venture arrangements, shareholder agreements, employee share options and franchise businesses, Malaysia start-up founders and can assist with venture capital funds in Seed, Series A & B funding rounds. Feel free to contact us if you have any queries.
