Tax, Trade and Customs Update: Penalty Waiver in the First Year of Implementation of the Stamp Duty Self-Assessment System

On 21 December 2025, the Inland Revenue Board of Malaysia (“the Revenue”) issued a press statement in regard to the implementation of Phase 1 of the Stamp Duty Self-Assessment System (“STSDS”) which commenced on 1 January 2026 (“the Press Statement”). The Press Statement can be accessed here. 

In the Press Statement, the Revenue has informed that, amongst others, no penalties will be imposed on instruments stamped under the STSDS (“the Penalty Waiver”) in respect of:

• submissions of the incorrect Stamp Duty Declaration Form (Borang Nyata Duti Setem (BNDS)); or
• the furnishing of incorrect or inaccurate information which affects the amount of stamp duty chargeable.

Please note that the Penalty Waiver is applicable for:

• stamping applications submitted under the STSDS from 1 January 2026 to 31 December 2026 (“the Concession Period”); and
• any incorrect stamp duty assessments under section 72D(2) of the Stamp Act 1949 which are subsequently identified through stamp duty audits conducted by the Revenue during the Concession Period.

Should you have any enquiries, you may direct them to Mr. Anand Raj at anand@shearndelamore.com, Ms. Irene Yong at irene.yong@shearndelamore.com and Ms. Foong Pui Chi at foongpuichi@shearndelamore.com of our Tax, Trade and Customs practice group.

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