Stamp Duty Penalty Waiver Ends This Year: Which Agreements Should You Check?

Many business owners sign an agreement, file it away, and forget about the stamp duty.

If that sounds familiar, there is still time to fix it without a late penalty.

According to LHDN's Chief Executive Officer on 31 October 2026, over 1 million documents involving RM471 million in stamp duty have been stamped under the Stamp Duty Voluntary Disclosure Programme (PKPS) as at 30 September. The programme was extended by about six months and will end at the end of this year.

So, who can benefit?

Documents signed or executed between 1 January 2023 and 31 December 2025 that have not been stamped can be stamped without the late stamping penalty.

In simple terms, you still pay the stamp duty. You just do not pay the penalty for being late.

So, which agreements should you check?

Start with the documents your business signed from 2023 to 2025 and see whether each one has proof of stamping. Common examples include tenancy agreements, loan agreements and share transfer documents. This is not a complete list, as it depends on what the document is.

Documents signed overseas also need to be stamped once brought into Malaysia.

What happens after the deadline?

A document stamped up to three months late carries a penalty of RM50 or 10% of the duty, whichever is higher. After three months, it is RM100 or 20%, whichever is higher. On RM1,000 of stamp duty, that is a RM200 penalty.

From a business perspective, the bigger risk is not the penalty. Under the Stamp Act 1949, an unstamped document generally cannot be used as evidence in court until the duty and penalty are paid.

For businesses that signed agreements between 2023 and 2025, it may be worth reviewing them before the programme ends.

If your company needs help checking whether agreements signed from 2023 to 2025 have been properly stamped, our team can help identify the documents that need stamping and handle the e-stamping process for you. Feel free to WhatsApp us at 010-246 2151.