CLIENT ALERT: 100% Stamp Duty Penalty Waiver till June 2026
1.0 Introduction
The Inland Revenue Board of Malaysia (“IRB”) has officially launched the Stamp Duty Special Voluntary Disclosure Programme (“SVDP 2026”) pursuant to an announcement made by the Prime Minister on 5 January 2026 in his 2026 New Year Address.1
2.0 Overview of the SVDP 2026
By the powers conferred to the Stamp Duty Collector under subsection 47A(2) of the Stamp Act 1949 (“SA 1949”), all instruments that are executed between 1 January 2023 and 31 December 2025 are eligible under SVDP 2026. Additionally, the following applies:
a) There is no need for taxpayers to submit a formal appeal (permohonan rayuan penalti). Penalties will be remitted (exempted) automatically upon payment of the relevant stamp duty.2
b) While the Notice of Assessment (Notis Taksiran) or Stamp Duty Return Form (Borang Nyata Duti Setem) may still display a penalty amount, it will be automatically waived during the payment process.3
2.1 Is Your Document Eligible for SVDP 2026?
The SVDP 2026 covers all instruments executed, such as agreements or documents signed. In order to qualify for SVDP 2026, your instruments must meet two specific criteria:
a) The instrument must be executed (disempurnakan) between 1 January 2023 to 31 December 2025; and4
b) Stamping and payment of stamp duty for such instruments must be made within the period from 1 January 2026 to 30 June 2026.5
2.2 Audit Immunity
In addition to the penalty waiver, SVDP 2026 also ensures that any instrument stamped under the SVDP 2026 will not be audited.6
2.3 Important Reminders to Note
a) Finality of Deadline: The deadline is fixed on 30 June 2026. If payment is made one day later (e.g., 1 July 2026), you will lose the waiver entirely and be liable for the full penalty.
b) Pre-2023 Documents: These documents are not eligible for the SVDP 2026 and will attract standard penalties under the SA 1949.
c) Fraud: SVDP does not apply to cases involving fraud.7
3.0 Conclusion
It is advisable to submit your stamping applications and make payment as early as possible to ensure that the Notice of Assessment can be issued and payment can be completed before the cutoff on 30 June 2026.
Should you require guidance on stamp duty or broader tax regulatory compliance matters, please feel free to contact us.
1. YAB Dato’ Seri Anwar bin Ibrahim, “Perhimpunan Bulanan YAB Perdana Menteri Bersama Warga Jabatan Perdana Menteri Bagi Bulan Januari (Amanat Tahun 2026),” Prime Minister’s Office of Malaysia, 5 January 2026, https://www.pmo.gov.my/en/speeches-en/perhimpunan-bulanan-yab-perdana-menteri-bersama-warga-jabatanperdana-menteri-bagi-bulan-januari-amanat-tahun-2026/ <accessed on 30 January 2026>.
2. See paragraph 4.4 of the Garis Panduan Operasi Lembaga Hasil Dalam Negeri Malaysia Layanan Khas Penalti Di Bawah Seksyen 47a Akta Setem 1949 Bagi Program Khas Pengakuan Sukarela Duti Setem 2026 (“SVDP 2026 Operational Guidelines”).
3. See paragraph 4.10 of the SVDP 2026 Operational Guidelines.
4. See paragraphs 4.1 to 4.2 of the SVDP 2026 Operational Guidelines.
5. See paragraph 4.3 of the SVDP 2026 Operational Guidelines.
6. See paragraph 4.8 of the SVDP 2026 Operational Guidelines.
7. See paragraph 4.7 of the SVDP 2026 Operational Guidelines.
Written by:
Megan Yap Sze Chyi (Associate) megan.yap@azmilaw.com
Sharmaine Yap Ern Xie (Associate) sharmaine.yap@azmilaw.com
Corporate Communications, Azmi & Associates – 30 January 2026
