(TAX UPDATE) Stamp Duty Latest Update - e-Duti Setem and Grace Period Without Penalty

Introduction

The Inland Revenue Board of Malaysia has made it clear.

Stamp duty administration is moving fully digital. The old STAMPS system is reaching the end of the road, and a new platform will take over from 1 January 2026.

For SME owners, directors, and accountants, this is not just a system change. It affects how agreements are stamped, how deadlines are met, and how penalties are avoided.

This article summarises the key changes and what you should do now, in plain and practical terms.

Key Summary: What Has Changed

1. STAMPS System Will Be Switched Off

Inland Revenue Board of Malaysia (HASiL) has announced that:

Access to the STAMPS system will end after 31 December 2025
From 1 January 2026, all stamp duty matters must be done via e-Duti Setem (e-DS)
e-DS is accessed through the MyTax portal

There will be no extension. STAMPS will not run in parallel.

2. Early Access Already Opened

To avoid last-minute chaos, HASiL has opened early login testing:

e-DS has been accessible via MyTax since 15 December 2025
Existing STAMPS users are expected to test and familiarise themselves now

This is a preparation window, not just a technical announcement.

3. What Users Must Do Before 31 December 2025

HASiL has clearly divided taxpayers into three groups:

(a) Existing MyTax Users

If you already have a MyTax ID:

Log in to MyTax
Go to ezHASiL Services > Stamp Duty > e-DS
Test access and ensure your login works

(b) Have TIN but No MyTax ID

If you already have a Tax Identification Number (TIN) but never activated MyTax:

Activate your MyTax ID via the MyTax portal
Do this before 31 December 2025
Only after activation can you access e-DS

(c) No TIN at All

If you do not yet have a TIN:

Apply via e-Daftar inside MyTax
Follow the official e-Daftar User Guide
After TIN registration, activate your MyTax ID
Then access e-DS

This step is critical for new companies, new directors, and newly appointed agents.

SME Implications: Why This Matters

For SMEs, stamp duty is not theoretical.

It applies to:

Tenancy agreements
Share transfers
Loan and security documents
Commercial contracts & more

If your MyTax ID is not active:

You cannot stamp documents
You risk late stamping penalties
Transactions may be delayed or disputed

This is especially risky for:

Property transactions close to year end
Financing documents signed in December
Agreements prepared by third parties but stamped by your company

Grace Period on Stamp Duty Self Assessment

The Inland Revenue Board of Malaysia also announced that there will be no penalty in the first year of implementing the Stamp Duty Self-Assessment System (STSDS).

Key points:

STSDS Phase 1 starts on 1 January 2026.
No penalties will be imposed for mistakes made in:
- Submitting the Stamp Duty Return (BNDS), or
- Providing incorrect or inaccurate information that affects stamp duty.
This special concession applies to stamping applications submitted from 1 January 2026 to 31 December 2026.
The purpose is education and transition support, not punishment.

In short : 2026 is a grace year for stamp duty self-assessment. Learn first, penalties later.

KTP’s View

This migration is not complicated. But it can be painful if ignored.

From experience, system transitions fail not because of technology, but because:

Directors assume accountants will handle it
Accountants assume directors already have MyTax access
Everyone waits until the last week of December

Our advice is simple:

Activate MyTax early
Test e-DS now
Do not wait for January problems

Stamp duty penalties are automatic. Systems do not listen to explanations.

Call to Action

If you are unsure whether:

Your MyTax ID is active
Your company or directors are properly registered
Your upcoming agreements will be affected

Speak to KTP early. We help clients prepare before systems change, not after penalties arrive.

Contact KTP for a stamp duty and MyTax readiness review.

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