This article first appeared in The Edge Malaysia Weekly on April 20, 2026 - April 26, 2026

MALAYSIA’S plan to fully implement a Stamp Duty Self-Assessment System (SDSAS) by 2028 is drawing growing scrutiny from property professionals, who warn the shift could undermine market transparency even as it promises greater efficiency.

The Inland Revenue Board’s (IRB) reform is designed to modernise the country’s tax administration by allowing taxpayers to independently determine and pay stamp duties. The rollout is being staged in three phases, beginning on Jan 1 this year with tenancy and lease agreements, general stamping and securities instruments (see table for all three phases).

The next phase, set for Jan 1, 2027, will extend the system to property ownership transfers that do not require valuation by the Valuation and Property Services Department (JPPH), a unit under the Ministry of Finance. Full implementation is slated for 2028.

Currently, JPPH plays a central role in determining market value for stamp duty purposes — a process that The Edge understands typically takes about two weeks. Its involvement was originally introduced to curb under-declaration and safeguard government revenue.

Critics say removing that upfront verification risks reopening old vulnerabilities.

“While the intention behind self-assessment may be to improve efficiency, allowing property purchasers to declare transaction values without independent verification could compromise the integrity of Malaysia’s property transaction data,” says Subramaniam Arumugam, president of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector (PEPS).

“Historically, the verification role of JPPH was introduced precisely to prevent under-declaration and protect stamp duty revenue. If unchecked, self-declaration may lead to inaccurate price reporting, which in turn distorts valuation benchmarks relied upon by valuers, banks and policymakers,” he tells The Edge.

Subramaniam advocates a hybrid approach — self-declaration paired with risk-based verification — to balance efficiency with accountability.

Datuk Mani Usilappan, a former JPPH director-general who retired in 2006 and is now managing director of VPC Alliance (Kajang) Sdn Bhd, argues the policy risks repeating history.

“Initially, it was estate duty, then stamp duty was brought within its fold — the main reason being that, around that time, stamp duty was collected on the spot by the deputy collectors of stamp duty located at every land office.

“This had led to gross under-declaration and great loss of tax revenue. The precursor to the section 32(a) was section 12 (a), which was amended so that the stamp duty would be collected based on the market value of the declared consideration, whichever is higher. That led to the establishment of JPPH and its branches nationwide to enable the government to collect the correct amount of stamp duty. Government auditors raised queries if proper collectable revenue was not done,” Mani recalls.

He says the current shift effectively reverts to a system that was in place 50 to 70 years ago. “Back then, under-declaration on sales and purchases of real estate was rampant,” he adds.

IRB maintains that modernisation does not mean weaker enforcement. In response to queries from The Edge, the agency says the primary objective of the SDSAS is to modernise and streamline Malaysia’s stamp duty administration in line with international practices.

“The implementation of Phase 3 in 2028 is expected to enhance efficiency by reducing processing time associated with the formal assessment process, which involved the valuation by JPPH and adjudication by IRB prior to the issuance of assessment notices,” it says.

On how it would affect the property market, IRB says the SDSAS is anticipated to significantly improve transaction turnaround time and market efficiency. Buyers, sellers, legal practitioners and other stakeholders will be able to complete stamp duty declarations without waiting for JPPH’s valuation and IRB’s adjudication, thereby expediting completion and settlement timelines.

“At the same time, the responsibility for ensuring accurate declaration of transaction values will rest with the transacting parties. They are required to support their declarations with appropriate documentation, including valuation reports or reasonable price justifications,” IRB says.

Still, sceptics question whether post-transaction enforcement can fully replace pre-transaction verification.

According to Mani, who is also a member of the executive council of PEPS, IRB fails to appreciate that real estate is not a uniform asset like shares.

“The asset underlying is complex, heterogeneous and requires extensive and professionally competent assessors to assess the market value for tax purposes. Self-assessment would certainly lead to gross under-declaration of the property market. This will distort market values,” he says.

“True real estate values will not be able to be ascertained. The market becomes far more opaque and mirrors what is happening in countries like India, Thailand and Vietnam.

“Retrogressing towards self-declaration ignores the complexities within the real estate market and sets back the clarity and transparency that had been built over the last 50 to 70 years.”

Mani notes that while some countries, such as Singapore, have moved towards self-declaration, they also include provisions allowing the government to acquire properties at the declared prices, thereby introducing a deterrent against under-declaration.

“We do not have those rules,” he says.

IRB says that while the pre-assessment valuation process will be streamlined, compliance oversight remains robust.

“IRB will continue to safeguard revenue through risk-based audits, advanced data analytics and post-declaration reviews to identify discrepancies or anomalies. Where risks or inconsistencies are detected, IRB may request an independent valuation from JPPH to verify the declared value and determine whether any underpayment of duty has occurred,” it says.

Mani says Bank Negara Malaysia and national policies on finance have considered the importance of a robust property market in which the true values are well determined and have established their policies based on the continued transparency and definitive market value.

“Where transactions are not verified and declared prices are taken at face value, lending institutions will suffer because real estate valuers will be basing their opinions on these self-declared prices and would most likely provide below-market valuations. This is bad for lending institutions as well as for the property market, as it could result in a significant divide between true values and declared value,” he warns.

On whether IRB has formed or will form another team conducting checks on the accuracy of the declared amounts, it says a Stamp Duty Audit Framework was issued effective from Jan 1, 2025, to support the SDSAS and the scope may cover up to three calendar years.

“No time limitation applies in cases involving fraud, duty evasion or negligence. This framework ensures that while the SDSAS promotes efficiency, it continues to maintain strong enforcement and compliance standards,” it says.

Mani argues: “The only advantage in this self-declaration regime would be time saved. But at what cost? A property market that was seen as one of the best in Southeast Asia for being transparent and robust will be reduced to that of an emerging market.

“While Asean countries are trying to emulate the Malaysian example of JPPH and the private sector with proper valuation standards and valuations of real estate to bring about clarity and transparency in values, the move towards reverting to a self-declared regime could be costly, and not wise in the long run.”

It remains unclear how relevant JPPH will be with the implementation of the SDSAS, as JPPH’s core function — valuation services, according to local practitioners — will no longer be required from Jan 1, 2027.

The Edge understands from local practitioners that vital information on buyers and sellers in land deals, for instance, has no longer been available in JPPH since September 2024, reportedly for privacy reasons.

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