Short answer: you do. From 1 January 2027, every instrument transferring ownership of real property (without JPPH valuation) falls under the Stamp Duty Self-Assessment System. You calculate it, you declare it — and that declaration is deemed to be the assessment.
Previously you waited for a notice of assessment from the Collector. Now that responsibility moves to your desk. If it is wrong, it is your error — until the Collector re-assesses.
Implementation phases
| Phase | Date | Instruments |
|---|---|---|
| Phase 1 | 1 January 2026 | Tenancy and lease agreements, security instruments, general stamping |
| Phase 2 | 1 January 2027 | Transfer of real property ownership (without JPPH valuation) |
| Phase 3 | 1 January 2028 | All other instruments |
The old STAMPS system was fully discontinued on 31 December 2025. All stamping now runs through the e-Stamp Duty system in the MyTax portal.
What actually changes
What changes is not the rate. The rates stay the same. What changes is the burden of proof.
Previously, no stamp duty liability arose until it was imposed or adjudicated by the Collector. Now, if your return is wrong, it remains your responsibility. The Collector only has to re-assess.
The Collector has also been given real powers to:
- demand supporting abstracts and sworn statements
- conduct audits that can reach back several years
- impose higher penalties for failure to comply with self-assessment protocols
Remember: stamp duty is charged on instruments, not transactions. If the document exists and is chargeable, it has to be stamped.
The steps you need to take
- Have a Tax Identification Number (TIN)
- Log in through the MyTax portal
- Upload the instrument to be stamped
- Complete the STSDS application form
- Self-assess the stamp duty payable
- Pay within the stipulated period
- Keep the instrument and all related records for 7 years from the date the duty was paid
The biggest risk I see inside businesses
This is the part most owners miss — and it is not about new transactions.
It is about old instruments still sitting in the company’s files that were never stamped. A lease agreement from several years ago. A loan agreement between related companies. Security documents. Asset transfers. Many businesses keep these in a file without realising they are a hidden liability.
Under self-assessment, wider audit powers mean these old documents can resurface as additional duty plus penalties.
What I would do before 1 January 2027
- Audit your company’s list of instruments — lease agreements, loan agreements, security documents, asset transfers — from 2020 to now. List which are stamped and which are not.
- Name the person responsible. Under self-assessment, mistakes usually happen because nobody owns the process.
- Set up a 7-year record system. Not in a box in the store room. In something searchable.
- Get advice on instruments that are unclear. Instrument classification is the most common source of dispute — and now the burden sits with you.
FAQ
When does Phase 2 start? 1 January 2027, for instruments transferring real property ownership without JPPH valuation.
Did the stamp duty rates change? No. The rates are unchanged. What changed is who calculates and declares them.
What does “deemed to be assessed” mean? Your STSDS submission is treated as having been assessed by the Collector at the time it is submitted. You no longer wait for an assessment notice.
How long must records be kept? Seven years from the date the duty was paid.
Are old documents involved too? Stamp duty is charged on instruments, not transactions, and the Collector has audit powers that reach back several years. Old unstamped documents are a real risk.
Where can I check the instrument list for each phase? On LHDN’s official site (hasil.gov.my), under the Stamp Duty Self-Assessment System.
Under self-assessment, the authority no longer protects you from your own mistakes. It rewards tidy businesses and punishes untidy ones. That is not a big change on paper — but it is a big change in risk.
If you want to know where your business is actually stuck, message me for a business assessment I do myself.
— Datuk Wira Dr Azizan Osman
Sources: LHDNM — Stamp Duty Self-Assessment System (STSDS), LHDN e-Newsletter Edition 1/2026, MABC report “The New Stamping Ground”, Budget 2027 documents. This article is not tax advice — confirm your company’s position with your tax officer or stamp duty adviser.