IRBM STAMP DUTY SELF-ASSESSMENT (STSDS) AND AUDIT COMPLIANCE FOR COMMERCIAL INSTRUMENTS

INTRODUCTION FOR IRBM STAMP DUTY SELF-ASSESSMENT (STSDS) AND AUDIT COMPLIANCE FOR COMMERCIAL INSTRUMENTS

Effective 1 January 2026, IRBM has imposed stamp duty self-assessment system (STSDS) as effort to increase country tax revenue. After the Finance Bill Act 2024 was gazetted, the stricter stamp duty enforcement audit was introduced on checks on stamping on employment related instruments such as offer letters and employment contracts. However, the audit findings revealed other instruments such as commercial instruments on business side such as customer and vendor services contract instruments were unstamped or stamped late. Stamping on commercial instruments will be also a focus area for stamp audit. With the recent announcement on special voluntary disclosure programme for historical stamp duty instruments unstamped, duty payers have chances to review and identify backdated years instruments for stamping without penalties and be excluded from tax audit. Moving forward, the stamp duty self-assessment will come into effect in phases, commencing 1 January 2026 starting mainly on commercial instruments like general agreements and securitised agreements. The phased implementation are as follows:

Phased implementation:

• Phase 1 (2026) : Rentals, leases, securitised agreements, general agreements and securities
• Phase 2 (2027) : Property ownership transfers
• Phase 3 (2028) : Other instruments and agreement

This course will cover the specific aspects of commercial instruments which were often overlooked and not stamped and how to assess hybrid commercial instruments and related party agreements without incurring stamp duty penalties.

Target audience:  Business/Commercial Units Heads, Accountants, finance and administrative staff, business unit managers, contracts management staff, business development staff team, project staff team, sales team, key accounts managers, junior executives, operation team, purchasing, compliance and internal audit team. This can be extended to staff with delegated responsibilities company’s instruments stamping and record keeping.

COURSE OBJECTIVES

On completion of the programme, participants will be able to: –

1. Develop a deeper understanding of requirements and how to assess stamp duty rates for commercial instruments based on Amended Stamp Duty Act 2024, First Schedule.
2. Navigate and understand how to register company or individual profile under E-Duti Setem website based on user manual, apply for relevant stamp duties and also payment methods.
3. Learn the consequences of non-compliance penalties which is late declaration and payment of stamp duties.
4. Apply knowledge on the required types of complex and hybrid company’s commercial and financial instruments which requires self-assessed stamp duties.
5. Foster an organisation culture of compliance relating to self-assessment stamp duties for all company instruments.

TRAINING APPROACH

Where appropriate, training learning activites will include the following:

• Interactive Lecture notes, tips & videos
• Pre and Post Test (Online)
• Faciliated Group Discussions & Quiz
• Practical exercises on calculation of stamp duties
• Question and Answer Sessions

Pre-requisite: Participants are allowed to bring their laptops and devices for navigation of E-Duti Setem (previously known as STAMPS portal)

COURSE CONTENT

Module 1 : The Essentials of Malaysian Stamp Duty for Commercial Instruments

• Stamp duty instruments commonly used in business environment, including:
• Customer-related instruments: Service Level Agreements, Addendum, Non-Disclosure Agreements with legal penalties, Letters of Award, and Letters of Extension, Memorandum of Understanding, Agreement to Sale and Purchase.
• Vendor/Suppliers-related instruments: Service and maintenance contracts, leasing agreements for movable equipment, tenancy agreements for immovable assets, pest control, photocopier machines, and hygiene services, insurance policy

Module 2 : Latest Stamp duty rates for Commercial Instruments

• Differentiation between instruments and transactions which causes confusion to duty payers for self-assessments stamp duty applications.
• Detailed explanation of agreements under Item 4 General Agreements, Employment Contracts, Statutory Declaration
• Detailed interpretation Item 22(1) duty rates, including guidance on determining the rates for services and subcontract agreements for definite period (fixed and non-reviewable contracts) and indefinite period terms like certain inter-company transactions and related party transactions.
• Applicable ad valorem duty rates of 0.1%, 0.5%, and 1.0% on instruments,
• Tips on how to assess which correct rate applies to hybrid organization commercial agreements with contract value determination for stamp duty purposes, including:
• Fixed vs variable pricing
• Contracts with automatic annual renewal terms
• Terms and conditions within agreements that may impact duty exposure
• Stamp duty payback and refund on cancelled projects and service termination procedure for single tier and multi-tier projects/contracts.
• Procedures and mechanism of stamping for leasing of movable and immovable assets

Module 3 : Obligations, stamp duty audit framework & stamp duty exemption

• Overview of Stamp Duty Audit framework for auditee companies on commercial instruments.
• Interpreation of Stamp Duty General Exemptions in First Schedule for Item 4, Item 22, Item 27, Item 32 and Item 49
• Specific Exemptions on stamp duty like Restructuring, Amalgamation of Companies and examples of scenarios – Section 15 & 15A Stamp Duty Act 1949
• Little-known reliefs that save thousands like stamp duty exemptions for Budget 2026 and Public Ruling remissions available for service level contracts

Module 4 : Transition to Self-Assessment Compliance Mechanism

• Importance of record keeping and checklist by departments
• Deadline and revised 2025 stamp duty penalties on duty undercharged
• Trigger points and stamping datelines
• Malaysia Inland Revenue 2026 Special Voluntary Disclosures mechanism and guidelines for year 2023-2025 unstamped executed commercial instruments penalty waivers
• IRBM E-Duti Setem online system registration as administrative agent and add users for company ID.
• High level walkthrough on E-Duti Setem stamping process for general agreements, securitized agreements and tenancy rental agreements from application, appeal and payments.
• Method of payments available – FPX Online for local Malaysian business operation and Virtual Account for stamping application payments made from overseas entities

Module 5 : Preparation of Self-Assessment Compliance

• Identify and assign clearly defined roles of stamp duty compliance by departments for administrative access and removal in E-Duti Setem.
• Expectation from Sales, Business Development, Purchasing, Operations, Project managers are expected to flag or confirm
• When and how to escalate uncertain cases
• Alignment with Finance without duplicating responsibilities
• Learning activity: Participants must identify organization specific red flags checklist to ensure timely compliance and correct self-assessment.
• Practical steps and tips to ensure that participants stay informed on latest stamping developments.