KUALA LUMPUR (June 26): Malaysia has announced an extension for taxpayers to pay overdue stamp duties until Dec 31, 2026.

Under the Special Voluntary Disclosure Programme, taxpayers with documents or instruments signed or executed between Jan 1, 2023 and Dec 31, 2025 can settle overdue stamp duties with a 100% penalty waiver, the Inland Revenue Board said in a statement on Friday.

"This extension is the government’s effort to continue encouraging voluntary compliance with stamp duty," said the board also known as Lembaga Hasil Dalam Negeri, or LHDN.

The extra time will also allow taxpayers to adjust to the implementation of the self-assessment system for stamp duty. Malaysia is transitioning from official assessment to a self-compliance model, a major shift in how taxpayers manage legal documents.

Under the new regime, the responsibility to calculate, declare, and pay stamp duty shifts to taxpayers or their agents through the MyTax online portal.

“Duty payers are encouraged to submit stamping applications and make stamp duty payments early to ensure that the assessment notice can be issued within the period and that payment is made within the stipulated time frame,” LHDN said.

No appeal is necessary and the penalty will be automatically waived upon payment. However, the extension is subject to conditions, including paying the duty before Dec 31, 2026, the board added.