Previously in January 2026, the Inland Revenue Board of Malaysia (“HASiL”) introduced the Stamp Duty Special Voluntary Disclosure Programme (“PKPS”), allowing duty payers to voluntarily stamp eligible unstamped instruments without incurring late stamping penalties. For more information on the PKPS, kindly refer to our earlier article here.
With a view to promoting voluntary stamping compliance, the HASiL recently extended the PKPS for a further six months starting from 1 July 2026. Duty payers now have until 31 December 2026 to regularise any eligible unstamped or understamped instruments for stamping, with late stamping penalties automatically waived.
Here are the key points duty payers should take note of to partake in this programme:
- Extended Programme Period: 1 July 2026 to 31 December 2026.
- Qualified Instruments: All types of instruments executed between 1 January 2023 and 31 December 2025 that have not been stamped or had stamp duty paid.
- Qualifying Criteria: (i) Stamping submission and (ii) payment of stamp duty must both be completed within the programme period.
- Exclusions: The penalty waiver does not apply to:
(i) cases involving fraud or forgery with an intent to evade stamp duty;
(ii) instruments signed and dated before 1 January 2023 or after 31 December 2025;
(iii) cases where duty and penalty had already been paid before 1 January 2026;
(iv) instruments submitted for stamping outside the PKPS’s programme period; and
(v) instruments submitted for stamping within the PKPS’s programme period, but stamp duty is paid after such period. - Submission Procedure: Applications must be made online by submitting the instrument via the e-Stamp Duty System. Manual submissions will not be accepted. No separate appeal is required, and the penalty will be automatically waived upon payment.
- Exemption from Audit: All qualified instruments that have been stamped and paid under the PKPS 2026 will not be subject to HASiL’s audit. However, this exemption will not extend to other instruments that were not stamped.
Key Takeaways for Duty Payers
If you have any qualified instruments falling within the eligible period, do not wait until the eleventh hour. As both stamping submissions and payments must be completed before 31 December 2026 to benefit from the penalty waiver, duty payers are strongly encouraged to initiate the process early to ensure that assessment notices are issued and stamp duty payable is duly settled before the deadline.
Given the high volume of instruments submitted and backlog of stamp duty applications with HASiL, we would recommend submitting the instruments for stamping as early as possible, to avoid a situation where duty cannot be paid before the applicable deadline due to processing delays.
In the meantime, the client should still proceed to self-assess each instrument and select the correct category for stamping purposes, particularly for instruments falling within Phase 1 of the current self-assessment regime. Where the correct category or treatment is not clear, the client is encouraged to seek professional advice before submission, to avoid misclassification and the resulting risk of underpayment or penalty.
How DNH Can Help
At Donovan & Ho, we assist clients with all aspects of Malaysian stamp duty compliance, including:
- Preparing Stamp Duty Policy as internal governance and guidance document for the client and its employees;
- Providing stamp duty analysis in respect of the client’s instruments, and developing a structured report setting out our findings and recommendations;
- Advising on the eligibility for penalty waiver under PKPS for client’s instruments;
- Reviewing the substance of the instrument and advising on the applicable stamp duty;
- Identifying the correct stamp duty classification for chargeable instruments;
- Facilitating end-to-end stamping submissions via the e-Stamp Duty System;
- Attending to bulk stamping of mass instruments, such as employment agreements and other high-volume instruments; and
- Advising on any other stamp duty related matters.
Should you have any enquiries in relation to stamp duty, please feel free to contact our Corporate & Commercial practice group at Donovan & Ho.
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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.
