Stamp Duty Audit Framework 2025

The Stamp Duty Audit Framework (“SDAF”) has been issued by the Inland Revenue Board of Malaysia (“IRBM”), and is effective since 1 January 2025. The new framework provides clarity on the audit process, rights and responsibilities of duty payers, penalties, and appeal procedures under the Stamp Act 1949.

Objective

The primary objective is to enhance tax compliance, transparency, and enforcement.

Scope of Audit

The audit applies to individuals, businesses, and legal representatives involved in stamp duty transactions. The purpose is to ensure that stamp duty is correctly declared and paid.

Stamp duty audit cases are selected either through a computer system based on the following criteria:

Selection through risk assessment criteria;
Selection based on specific industries;
Selection based on specific issues for specific groups of duty payers; and
Information received from third parties.

Audit Coverage Period

Standard audit scope covers transactions within the last three (3) years;
The time limit does not apply for cases involving fraud, tax evasion, or negligence.

Types of Stamp Duty Audit

Audit Type	Description
General Review	Conducted at the IRBM offices through review of documents that have been attached by the auditor during the stamping application made through STAMPS; Taxpayers may be required to provide additional clarifications. Under certain circumstances, a general review case may be referred for a Comprehensive Review; The deadline for completing the review is usually seven working days from the date of issue of the ‘Surat Makluman Dan Permohonan Dokumen Tamabahan’.
Comprehensive Review	Carried out at the premises of the duty payer, at the offices of IRBM or at other agreed locations; This includes the review of all documents that have been completed (signed) in the care of the obligor and documents that have been stamped must be kept by the obligor in full and in order; The deadline for completing the audit is usually 60 days from the date of the audit visit letter.

Audit findings and penalties

The duty payers will be notified in writing via the Surat Penemuan Semakan Kes. The duty payer can discuss the audit findings with the IRBM within 14 days from the date of the Surat Penemuan Semakan Kes if they disagree with the audit findings.
Failure to provide the information will result in a fine of up to RM250 (increased to RM10,000 from 1 January 2026).

Voluntary Disclosure (VD)

Refers to VD by the duty payer on documents stamped (by STAMPS) more than three months from the date of stamping prior to the commencement of the audit, i.e. prior to the issuance of the Surat Memohon Dokumen dan Maklumat (Request for Documents and Information Letter).
The reduced rate of penalty is set at 10 % of the customs debt or RM50, whichever is higher (which is a favourable penalty compared to the standard rate of 20 % of the customs debt or RM100).

Appeals

An appeal to the IRBM may be lodged within 30 days from the date of issue of the assessment.
An appeal to the High Court may be made within 21 days of the IRBM's written decision.

Key Takeaway for Duty Payers

The 2025 Stamp Duty Review Framework reaffirms the IRBM's commitment to enforcing compliance while ensuring fairness and transparency in stamp duty audits. Duty payers are encouraged to review their stamp duty records and obligations, maintain accurate records and use voluntary disclosure to rectify unpaid duty prior to an audit.