Effective from 1 January 2026, LHDN will officially implement the Self-Assessment Stamp Duty System (STSDS).
Documents stamped (Setem) under the STSDS regime will enjoy a special grace period during the first year, where no penalties will be imposed even if submission errors occur.
Effective Date
Effective from 1 January 2026
Applicable to all stamped documents (Setem) submitted under the STSDS regime.
Penalty Exemption Applies to the Following Situations
During the grace period, no penalties will be imposed even if the following errors occur:
- Errors in the Stamp Duty Return Form (Borang Nyata Duti Setem, BNDS)
- Submission of incorrect or incomplete information
- Any declaration errors affecting stamp duty assessment
Special Grace Period (No Penalty Period)
1 January 2026 – 31 December 2026
Applications submitted during this period will not be subject to penalties, even if filing errors are identified.
Main Objectives of This Grace Period
1.Educational & Transitional Support
To help taxpayers adapt to the new STSDS e-Stamping system.
2. Increase Taxpayer Awareness
To improve understanding of the electronic stamp duty regime.
3. Encourage Voluntary Compliance
To promote better tax compliance practices among taxpayers.
4.Allow Adaptation Time
To provide sufficient time for taxpayers to familiarise themselves with the procedures, system testing, and transition into the electronic self-stamping regime.
Early Action is Recommended
Although penalties are waived during the grace period, taxpayers are still encouraged to ensure accurate submissions.
Incorrect or incomplete information may still result in future tax reviews or compliance risks.
(201706002678 & AF 002133)