Why is LHDN waiving penalties for the new stamp duty system?

Question

Accepted Answer

LHDN Waiving Penalties for New Stamp Duty System to Facilitate Transition and Encourage Compliance

The Inland Revenue Board (LHDN) is implementing a penalty waiver for the initial year of the Self-Assessment Stamp Duty System (STSDS) to ease the transition for duty payers and promote voluntary compliance. This concession, effective for applications submitted between January 1 and December 31, 2026, is designed to allow individuals and businesses sufficient time to familiarise themselves with the new electronic self-stamping process.
Grace Period for System Implementation

LHDN has announced that no penalties will be levied during the first full year of the STSDS implementation. This grace period specifically applies to applications lodged from January 1, 2026, through to December 31, 2026, signalling a supportive approach to the system's rollout.
Scope of Penalty Waiver

The penalty waiver encompasses a range of potential issues that may arise as users adapt to the new system. This includes errors made in the submission of the Stamp Duty Return Form (BNDS), any inaccuracies in information provided that affect the stamp duty assessment, and offences that fall under subsection 72D(2) of the Stamp Act 1949.
Encouraging Voluntary Compliance and Familiarisation

The primary objective behind this leniency is to encourage duty payers to voluntarily comply with the new regulations without immediate fear of punitive measures. By offering this one-year period without penalties, LHDN aims to provide a supportive environment for users to learn and adapt to the electronic self-stamping procedures, thereby fostering a smoother integration into the STSDS.

Reading history

Hide →

This history is cleared when the page is closed.

Why is LHDN waiving penalties for the new stamp duty system?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends