Malaysia will implement the Self-Assessment System (SAS) for stamp duty starting 1 January 2026.

LHDN has released 3 new guidelines explaining duty payers’ responsibilities, penalty rules, and how stamp duty applies to movable property transactions on November 2025.

This article summarises the key points based strictly on the uploaded Stamp Act 1949 and official LHDN guidelines.

First …
LHDN now gives a clear definition of what counts as an “instrument”, the legal nature of a written document, the scope of stamp duty under the Stamp Act 1949,
The requirement that all instruments including exempt ones must still be stamped.

Second …
Penalties for late stamping and late payment under section 47A are now standardised. Any delay within three months triggers RM50 or 10 percent penalty, while delays beyond three months trigger RM100 or 20 percent.

Third …
LHDN has clarified stamp duty for movable property. SMEs must classify correctly between assets and trade goods.

Assets attract ad valorem duty, while trade goods enjoy exemption on the sale instrument but not on the transfer instrument.

The new guideline on movable property is a serious matter for SMEs. Many businesses buy and sell machines, vehicles, equipment or trading stock, often without thinking about stamp duty.

Under the new guideline, SMEs must correctly classify each item as an asset or a trade good before stamping. This classification directly affects the duty payable.

Any wrong classification may lead to underpaid duty, exposure to penalties or issues during an LHDN audit.

SMEs that do not put proper controls in place may face unexpected compliance risks starting 2026.

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