PUTRAJAYA, Dec 21 — Taxpayers adjusting to Malaysia’s new Self-Assessment Stamp Duty System (STSDS) will not face penalties in its first year of implementation, the Inland Revenue Board (LHDN) announced today.
Beginning January 1, 2026, individuals and organisations stamping instruments under STSDS will be exempted from penalties for incorrect submissions of the Stamp Duty Return Form (BNDS), as well as for inaccurate information affecting duty assessment.
This concession applies to applications submitted between January 1 and December 31, 2026, and is aimed at supporting taxpayers as they transition into the new framework.
LHDN said the initiative is designed to educate users, foster understanding of the system, and promote voluntary compliance.
“The penalty-free period provides ample time for taxpayers to fully grasp procedural requirements and effectively perform self-electronic stamping,” the agency said.
The exemption will also cover offences detected through audits under subsection 72D(2) of the Stamp Act 1949 during the concession window.
Ahead of the rollout, LHDN has enabled early access to the e-Stamp Duty system via the MyTax portal, enabling taxpayers to test, prepare and familiarise themselves with the system.
The introduction of STSDS forms part of Malaysia’s wider digital transformation in taxation, promising faster processing, improved transparency and reduced administrative burden.
With the assurance of no penalties in the first operational year, the government hopes the public will embrace the system confidently and responsibly.
