taxsphere2026-01-294 min read
Special Voluntary Disclosure Programme (SVDP) Stamp Duty 2026
The Inland Revenue Board of Malaysia (IRBM) has announced a six-month Special Voluntary Disclosure Programme (SVDP) for stamp duty, effective from 01 January 2026 to 30 June 2026.
This programme allows businesses and individuals to regularize unstamped instruments executed from 01 January 2023 to 31 December 2025, with full 100% penalty exemption. Key points are as follows:
Eligibility and Scope
- All types of instruments executed within the period 01 January 2023 to 31 December 2025 that have not yet been stamped are eligible for 100% penalty exemption.
- The programme applies to all stamp duty payers, including non-citizens.
- Instruments executed before 01 January 2023 or after 31 December 2025 are not eligible.
- The programme does not apply to cases involving fraud.
Stamping and Payment
- Instruments must be submitted and stamp duty paid between 01 January 2026 and 30 June 2026.
- Penalties are automatically waived upon payment.
- Late payment, i.e., after 30 June 2026, will result in late payment penalties.
Special Cases
- Payers who submitted instruments before 01 January 2026 but have not paid the stamp duty and penalties are still eligible for full penalty exemption (100%) if payment is made within the programme period.
- All instruments stamped under this SVDP will not be audited, but audits may still apply to other instruments outside this programme or stamped after 01 July 2026.
Process and Display
- Penalty amounts may still appear on the Stamp Duty Return Form or Notice of Assessment, but they will be automatically removed during payment. The waived penalties will be reflected under the “Penalty Waived” section and not included in the “Total Amount Payable” section.
- Businesses and individuals are encouraged to submit and pay early to ensure notices of assessment are issued and payments are processed within the programme period.
Consideration for Businesses and Individuals
- Stamp duty is a direct tax on written instruments, including lease agreements, loan agreements, sale and purchase agreements, service agreements, intragroup agreements, employment contracts, and other legal documents, as provided under the Stamp Act 1949.
- Instruments must be stamped within 30 days of execution in Malaysia, or 30 days after receipt in Malaysia if executed abroad.
- Failure to stamp within the prescribed period may result in penalties according to the delay period.
- For instruments exceeding the stamping period where the payer does not participate in the SVDP, penalties will be imposed after 30 June 2026, and audits will be conducted in accordance with the Stamp Duty Audit Framework.
Businesses and individuals are advised to conduct a comprehensive review of all written agreements, contracts and other commercial documentations to ensure compliance and take advantage of this programme.