Penalty Remission under the Special Voluntary Disclosure Programme for Stamp Duty

In line with the announcement made by the honorable Prime Minister cum Minister of Finance, YAB Dato’ Seri Anwar bin Ibrahim on 5 January 2026, the Inland Revenue Board (“IRB”) has issued a media statement, together with operational guidelines and frequently asked questions (“FAQs”), regarding the implementation of the SVDP.  The details and mechanism of the SVDP are as follows:

1. Implementation period 
   
   The SVDP will be implemented for a six-month period, from 1 January 2026 to 30 June 2026.
   
   
2. Scope
   
   The SVDP covers all instruments executed from 1 January 2023 to 31 December 2025 which:
   
   a) have yet been submitted for stamping; or 
   b) have been submitted for stamping before 1 January 2026, but stamp duty payments have not been made.
   
   
3. Method of submission for stamping
   
   Manual submission of the SVDP application is not allowed.  All the instruments must be submitted for stamping online via e-Duti Setem.
   
   
4. Penalty remission under the SVDP
   
   Any late stamping penalty under Section 47A of the Stamp Act 1949 will be remitted under the SVDP.  The late stamping penalty will be displayed on the stamp duty return or the Notice of Assessment.  However, the penalty will be automatically remitted once the stamp duty payment is made.  This is on the condition that both the stamping and payment of duty are made within the implementation period.
   
   
5. Non-application
   
   The SVDP does not cover cases involving fraud, i.e. with elements of deception or falsification, where there is an intention to evade the payment of stamp duty.  Any instrument that contains elements of “fraud” is not eligible for penalty remission under the SVDP.
   
   
6. Stamp duty audit
   
   Any instruments stamped under the SVDP initiative will not be subject to audit.  However, this does not prevent duty payers from being audited in respect of other unstamped instruments.
   

The SVDP initiative provides a timely opportunity for duty payers to conduct a thorough review of their executed instruments and regularise any outstanding stamp duty obligations.  By conducting the review and ensuring that all instruments are properly stamped, duty payers can proactively address potential non-compliance and fully benefit from the penalty remission available under the SVDP.

Please note that if an instrument is submitted for stamping within the SVDP time frame but the corresponding payment is made after the period ends, a late stamping penalty will still be imposed. Therefore, duty payers who wish to participate in the SVDP are encouraged to submit the instruments for stamping as early as possible. Early submission enables issuance of notices of assessment within the SVDP period and facilitates timely payment within the stipulated time frame.

The IRB’s media statement, FAQs and operational guidelines on the SVDP can be accessed via the above links.

Poh Sin Yue
Partner
sypoh@kpmg.com.my
+603 7721 7285

Crystal Chuah Yoke Chin
Associate Director
ycchuah@kpmg.com.my
+603 7721 2714

Regina Lau
Partner
reglau@kpmg.com.my
+603 7721 2188

Titus Tseu
Executive Director 
titustseu@kpmg.com.my
+603 7721 2822

Ng Fie Lih
Partner 
flng@kpmg.com.my
+603 7721 2514