Tax experts: Stamp duty reform must come with stronger enforcement, stiffer penalties

The upcoming changes to Malaysia’s stamp duty taxation regime in 2025 signal a critical shift towards greater compliance and enforcement. Tax professionals highlight the need for robust enforcement measures, including stringent penalties, to deter fraud and encourage adherence to the updated regulations.

According to Soh Lian Seng, Head of Tax at KPMG in Malaysia, the amendments will make stamp duty mandatory and grant the Inland Revenue Board (IRB) the authority to audit agreements up to five years after payment. Under the self-assessment system, taxpayers must accurately calculate and classify instruments to avoid errors that could result in significant penalties.

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