The Malaysian Inland Revenue Board (LHDN) has introduced the PKPS Duti Setem 2026 to encourage voluntary tax compliance. This special program allows taxpayers to settle late stamp duty payments without the heavy burden of penalties. If you have legal documents that haven’t been stamped yet, this is your golden window to regularize them for free.
- Full Waiver: 100% remission of penalties under Section 47A.
- Strict Timeline: Program runs from 1 January 2026 to 30 June 2026.
- Eligibility: Only for documents executed between 2023 and 2025.
- Automatic: No formal appeal letter is required to waive the penalty.
What is the PKPS Duti Setem 2026?
As announced by the Prime Minister, the PKPS Duti Setem 2026 (Special Voluntary Disclosure Program) provides a full penalty exemption for late stamping. This initiative aims to educate the public and assist taxpayers during the transition to electronic self-stamping procedures.
Normally, Section 47A of the Stamp Act 1949 imposes penalties ranging from RM50 to 20% of the duty amount for delays. Under this program, those penalties are completely waived.
Eligibility Criteria for Penalty Remission
To qualify for the PKPS Duti Setem 2026, your documents must meet specific date requirements:
- Instrument Date: The document (e.g., Tenancy Agreement, Loan Agreement) must be dated between 1 January 2023 and 31 December 2025.
- Payment Window: You must apply for stamping and make the full payment between 1 January 2026 and 30 June 2026.
- No Fraud: This program does not apply to cases involving any element of fraud.
The Penalty Waiver Process
LHDN has simplified the process for this program. You do not need to write a justification or appeal letter.
When you apply for stamping through the LHDN portal, the system may still display the penalty amount on your Notice of Assessment. However, this penalty will be automatically deleted at the point of payment, provided it is done before the June 30 deadline.
Audit and Compliance Safety
One of the biggest advantages of participating in the PKPS Duti Setem 2026 is the audit protection. Instruments stamped under this voluntary program for the 2023–2025 period will not be audited by the authorities. However, LHDN still maintains the right to audit documents stamped after 1 July 2026 or those not covered by this program.
Frequently Asked Questions (FAQ)
Q: What happens if I pay after 30 June 2026?
A: If payment is made after the deadline, you are no longer eligible for the waiver. You will have to pay the full duty plus the original penalty under Section 47A.
Q: Does this cover documents signed in 2022?
A: No. Documents signed before 1 January 2023 are not eligible for the PKPS Duti Setem 2026 waiver.
Q: Do I need to submit an appeal form?
A: No appeal is necessary. The waiver is applied automatically during the payment process within the program period.
Full PDF Version: Garis Panduan Operasi Layanan Khas Penalti Di Bawah Seksyen 47A Akta Setem 1949 Bagi Program Khas Pengakuan Sukarela Duti Setem 2026
ANC Group – Your Personal Tax Advisor
Tax consulting is the core service of ANC Group. Our tax professionals provide clients with comprehensive tax support and guidance. We offer tax consulting and compliance services for expatriates, entrepreneurs, and listed and non-listed companies.
Our tax consulting services include business tax, transaction tax, personal tax, and corporate income tax. We don’t just guide you in interpreting and applying complicated taxation rules, but to explore new opportunities and business trends.
ANC Group keep you abreast with Malaysia tax updates and any changes in the local regulations.
We work closely with industry specialists, authorities, and associated professionals within ANC Group to provide the best-in-class integrated tax planning solutions. ANC specialists coordinate the accounting and taxation services to bring your business to success.
If you need professional tax advisory services regarding the Malaysia Income Tax Act 1967, our team is ready to assist you. Contact us here to discuss how we can support your business.
