Stamp Duty Self-Assessment System STSDS Malaysia: A Digital-First Guide for 2026
The Stamp Duty Self-Assessment System STSDS Malaysia marks a major shift in how taxpayers manage legal documents. Starting January 1, 2026, the Inland Revenue Board of Malaysia (LHDN) is transitioning from official assessment to a self-compliance model. Under this new regime, the responsibility for calculating, declaring, and paying stamp duty shifts directly to the taxpayer or their appointed agents via the MyTax portal.
Phased Implementation of STSDS (2026–2028)
To ensure a smooth transition, LHDN is rolling out the Stamp Duty Self-Assessment System STSDS Malaysia in three distinct phases. Each phase targets specific document types:
- Phase 1 (January 1, 2026): Focuses on rental and lease agreements, security documents, and general stamping.
- Phase 2 (January 1, 2027): Expands to property transfer documents that do not require JPPH valuation.
- Phase 3 (January 1, 2028): Full integration of all remaining chargeable instruments under the Stamp Act 1949.
Taxpayer Responsibilities and TIN Requirements
Under the Stamp Duty Self-Assessment System STSDS Malaysia, accountability is paramount. Every taxpayer, whether an individual or a company, must possess a Tax Identification Number (TIN) to access the e-Duti Setem module. You are now responsible for maintaining complete records of all stamped instruments and electronic certificates for at least seven (7) years to facilitate potential tax audits.
Understanding the Deemed Assessment Rule
A critical feature of the Stamp Duty Self-Assessment System STSDS Malaysia is the “Deemed Assessment.” When you submit the Stamp Duty Return Form (BNDS) online, the assessment is legally considered raised on that very day. This eliminates the wait time for official LHDN notices, but it also means the 30-day payment clock starts immediately upon submission of the electronic return.
Comparison: STSDS vs. Official Assessment
| Feature | Official Assessment (Old) | STSDS (New 2026) |
| Calculation | Done by LHDN Officers | Self-calculated by Taxpayer |
| Platform | STAMPS / Manual | MyTax (e-Duti Setem) |
| Notice | Notice of Assessment (Notice E) | Deemed Assessment (Auto) |
| Payment Deadline | 14 days from Notice date | 30 days from Submission date |
Stamping Deadlines and Section 47A Penalties
Despite the shift to self-assessment, the core deadlines of the Stamp Act 1949 remain. Instruments executed in Malaysia must be submitted for stamping within 30 days. Failure to submit the BNDS or pay the duty within the prescribed period will trigger penalties under Section 47A. However, for the transition year of 2026, LHDN has announced a “learning period” where certain penalty remissions may apply to encourage system adoption.
Step-by-Step Submission Procedure
To successfully navigate the Stamp Duty Self-Assessment System STSDS Malaysia, follow these simplified steps:
- Login: Access the MyTax portal using your TIN and digital certificate.
- Fill BNDS: Select the relevant form (e.g., PDS 15 for security or rental).
- Upload Documents: Attach a digital copy of the signed instrument and supporting evidence.
- Validate & Pay: Use ByrHasil or internet banking for immediate settlement.
- Download Certificate: Print the electronic Stamp Certificate to attach to your original document.
Key Takeaways
- STSDS is mandatory for Phase 1 documents starting January 1, 2026.
- Taxpayers must self-calculate and pay within 30 days of filing the return.
- Proper record-keeping for 7 years is now a legal necessity for all users.
- Use the MyTax portal for all submissions; the old STAMPS system is being replaced.
FAQ: Stamp Duty Self-Assessment System
Q: Can I still go to the LHDN branch for stamping?
A: LHDN is moving toward a 100% digital-first model. While some physical counters remain, Phase 1 documents are primarily handled via the Stamp Duty Self-Assessment System STSDS Malaysia online.
Q: What happens if I make a calculation error?
A: If you underpay, you must submit a corrective return. Under the new regime, incorrect returns can lead to penalties of up to 100% of the underpaid duty if discovered during an audit.
Q: Is there an exemption for small employment contracts?
A: Yes. Effective 2026, the exemption threshold for employment contracts is increased to those earning RM3,000 or less per month.
Full PDF Version: Guidelines for Applications for Stamping via the Self-Assessment Stamp Duty System (STSDS)
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