MALAYSIA is set to enter a new phase in modernising its tax administration with the introduction of the Self-Assessment Stamp Duty System (STSDS) beginning Jan 1, 2026.
Under this initiative, stamp duty payers will assess and pay stamp duty digitally through the MyTax portal, in line with the nation’s direction towards a digital-first model and self-compliance framework.
This transition marks a significant shift from the long-standing practice of official assessment by the authorities to a self-assessment model, which will be implemented in stages from 2026 to 2028.
This move aligns with the government’s policy focus on digitalisation, voluntary compliance and stronger fiscal governance without directly increasing tax rates.
Under the STSDS, stamp duty payers will assess and pay stamp duty digitally through the MyTax portal, in line with the nation’s direction towards a digital-first model and self-compliance framework.
Phased Implementation of STSDS
STSDS will be rolled out in phases according to the following timeline:
- Phase 1, effective Jan 1, 2026, covers instruments relating to Tenancy/Lease, Security and General instruments.
- Phase 2, effective Jan 1, 2027, includes instruments of Real Property Transfer that do not require valuation by the Valuation and Property Services Department (JPPH).
- Phase 3, effective Jan 1, 2028, covers all other categories of instruments not included in Phase 1 and Phase 2.
This transition is enabled through amendments to the Stamp Act 1949, granting legal authority for duty payers to assess, compute and declare stamp duty digitally.
The amendments also strengthen audit powers and penalties to enhance compliance.
How STSDS works
Under the new system, duty payers must submit the STSDS Declaration Form digitally via MyTax. Once the declaration is filed, it is deemed an assessment unless the collecting officer opts to conduct an official assessment.
Duty payers are fully responsible for:
- Maintaining adequate records,
- Timely filing of declarations, and
- Making payment of stamp duty.
Failure to comply may result in higher penalties and an increased likelihood of audit.
The STSDS is in line with the government’s policy focus on digitalisation, voluntary compliance and stronger fiscal governance without directly increasing tax rates. — AZMAN GHANI/The Star
Less leakage, faster processes
STSDS is expected to improve compliance by reducing the incidence of unstamped or under-stamped documents.
Meanwhile, it is also expected to accelerate revenue collection since duty must be paid upon the submission of the STSDS Declaration Form.
This digital system allows the government to:
- Reduce administrative costs,
- Minimise manual process-ing, and
- Facilitate targeted audits
based on digital records.
Value for users and businesses
STSDS offers several key advantages to duty payers and industry players:
- Streamlined digital processes – no more waiting for assessment notices.
- Greater control for businesses – users determine submission, computation and payment timing.
- Faster processing – shortens documentation timelines for property transfers, share transactions and commercial agreements.
- Clearer audit trails – reduces errors and disputes.
With MyTax functioning as a unified platform for income tax, e-Invoice and now stamp duty, tax compliance becomes easier for both individuals and businesses.
Learning from international best practices
Countries such as Hong Kong, Singapore, the United Kingdom and Australia have implemented self-assessment stamp duty systems with high success rates.
Notable outcomes include:
- Faster processing,
- Reduced leakages,
- More effective audits, and
- Reduced reliance on physical service counters.
However, international experiences also highlight risks such as system disruptions, vendor dependency and platform compatibility issues.
Malaysia has taken these lessons into account by adopting a phased implementation and strengthening technical support to minimise disruptions for users.
Success hinges on user readiness
HASiL (the Inland Revenue Board) advises businesses, legal practitioners and real estate industry players to register for MyTax and familiarise themselves with STSDS workflows ahead of the effective dates.
Although the phased rollout provides a transition window, the higher penalties prescribed under the Stamp Act require thorough preparation by corporate and professional sectors.
Scan the QR code for more information and detailed guidelines.
