Stamp Duty Voluntary Disclosure (SD-VD) 2026: Penalty Exemption Available Under LHDN’s PKPS Programme

The Inland Revenue Board of Malaysia (LHDN) has announced the implementation of the Stamp Duty Voluntary Disclosure (SD-VD) programme for 2026 under the Program Khas Pengakuan Sukarela (PKPS) Duti Setem 2026.

This programme provides eligible taxpayers with an opportunity to regularise unstamped or late-stamped instruments, where penalties imposed under the Stamp Act 1949 may be fully waived, provided all requirements are met within the programme period.

What Is Stamp Duty Voluntary Disclosure (SD-VD)?

Stamp Duty Voluntary Disclosure (SD-VD) allows taxpayers to voluntarily declare and stamp instruments that were:

  • Not stamped, or
  • Stamped after the prescribed time

Under PKPS Duti Setem 2026, penalties imposed under Section 47A of the Stamp Act 1949 may be waived, subject to compliance with the programme conditions and absence of fraud elements.

PKPS Duti Setem 2026: Programme Period

  • 1 January 2026 to 30 June 2026
  • Applicable to instruments executed between
    1 January 2023 and 31 December 2025

Instruments executed in calendar year 2026 are not eligible for this SD-VD programme.

Penalty Treatment Under PKPS

Based on LHDN’s official media statement:

  • Penalties may still be reflected on the stamp duty assessment notice
  • The penalties will be automatically waived during the payment process
  • No separate appeal or remission application is required

This penalty exemption applies only when stamping and payment are completed within the PKPS period.

Instruments Commonly Reviewed Under SD-VD

Taxpayers are encouraged to review whether the following documents were properly stamped:

  • Agreements and contracts
  • Letters of offer or appointment
  • Employment contracts
  • Tenancy and lease agreements
  • Loan or financing documents
  • Share transfer instruments

Only instruments executed within the eligible period and not subject to exclusion criteria qualify under PKPS.

Cases Excluded From SD-VD

The PKPS Duti Setem 2026 programme does not apply to:

  • Cases involving fraud or wilful misrepresentation
  • Instruments that are already under audit
  • Stamp duty assessments arising from audits on instruments not disclosed under PKPS

Instruments successfully regularised under PKPS will not be audited for stamp duty purposes, subject to the absence of fraud.

Why Businesses Should Take Action

Failure to stamp chargeable instruments correctly may expose businesses to:

  • Statutory penalties under the Stamp Act
  • Compliance risks during audits or due diligence
  • Delays in financing, restructuring, or corporate exercises

The SD-VD programme provides a time-limited compliance window to regularise past instruments before enforcement actions resume.

Early Submission Is Advised

LHDN encourages taxpayers to submit documents as early as possible to avoid potential processing delays closer to the 30 June 2026 deadline.

Need Assistance With Stamp Duty Review?

If you are unsure:

  • Which instruments are chargeable to stamp duty
  • Whether your documents qualify under SD-VD
  • How to complete stamping and payment correctly

Professional guidance can help ensure compliance and reduce future risk.

👉 Contact iComSec for assistance with stamp duty review, voluntary disclosure, and corporate compliance matters.

📖 Official Reference:
https://www.hasil.gov.my/media/4zvbflbl/20260128-kenyataan-media-hasil_pkps-duti-setem-2026.pdf