Dear Valued Clients,
As announced earlier, the Inland Revenue Board [“IRB”] has introduced a Special Stamp Duty Voluntary Disclosure Programme [“VDP”], effective from 1st January 2026 to 30th June 2026. The VDP provides full remission of penalties for late stamping under Section 47A of the Stamp Act 1949 for instruments executed between 1st January 2023 to 31st December 2025.
As the 30th June 2026 deadline approaches, the IRB has released an updated Stamp Duty Audit Framework (effective 1st January 2026) [“the Audit Framework 2026”], replacing the previous framework issued in January 2025. While the audit process remains substantially aligned with established practices under the previous framework, the recent updates aim to provide greater clarity regarding the scope of coverage and pertinent legislative provisions. Among the notable updates are:-
Audit Coverage Period
The IRB has clarified the period of audit coverage (which established the 3-year timeframe for the VDP) as follows:-
| Before | As Per the Audit Framework 2026 |
| Up to 3 calendar years | Current year and 3 preceding years only |
The 3-year limitation period for audit coverage does not apply in cases involving fraud, stamp duty evasion or negligence.
Reference to the VDP
The VDP has been formally included in the Audit Framework 2026. The implications for late stamping based on the type of voluntary disclosure have been clarified as follows:-
| Type of Voluntary Disclosure | Scope of Voluntary Disclosure | Timing of Voluntary Disclosure | Penalty for Late Stamping |
| VDP | Instruments executed from 1st January 2023 to 31st December 2025 | 1st January 2026 to 30th June 2026, before commencement of audit | Full remission |
| Ordinary voluntary disclosure | Instruments that remain unstamped for more than 3 months after the stipulated due date, not covered under the SDSVDP | Before commencement of audit | At a concessionary rate* |
* The Audit Framework 2026 no longer defines the concessionary rate as “10% or RM50, whichever is higher”.
When a stamp duty audit has already commenced, voluntary disclosure is no longer available and the abovementioned remission or concessionary rate will therefore not be applicable.
With the 30th June 2026 deadline fast approaching, this represents the last opportunity for businesses to take advantage of the VDP and enjoy the full remission of penalty for late stamping. Importantly, instruments stamped under the VDP will not be subject to future audit.
| How We Can AssistOur customised in‑house stamp duty training (HRD Corp claimable) is designed to support businesses that are at an early stage of understanding stamp duty compliance requirements or looking to strengthen their internal awareness.
The training session combines relevant legal context with practical insights, enabling participants to better appreciate key compliance requirements, identify potential risk areas and begin preliminary internal assessments for participation in the VDP.
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For more information, please contact:
Ms Rachel Chong
Executive Director
Tel: +603 7728 1800 (Ext 206)
Email: [email protected]
