PETALING JAYA: The Malaysian Industrial Commercial & Service Employers Association (Micsea) welcomes the announcement by the Inland Revenue Board of Malaysia on the implementation of the Stamp Duty Voluntary Disclosure Programme 2026 (PKPS 2026), which provides employers with a six-month amnesty period from Jan 1 to June 30 to regularise unstamped or unpaid stamp duty on employment-related contracts.
“On behalf of SME employers, Micsea would like to thank the Madani Government and the prime minister for this timely and pragmatic initiative. This programme clearly demonstrates that the Madani Government recognises and considers the challenges, cash-flow constraints and compliance difficulties faced by SME employers, particularly in managing legacy documentation risks,” said Micsea president YK Lai.
He said this programme presents a critical and time-sensitive opportunity for employers to fully comply with stamp duty obligations on instruments executed between Jan 1, 2023 and Dec 31, 2025, with 100% remission of penalties granted automatically upon payment of the stamp duty within the programme period.
“Micsea views PKPS 2026 as a business-friendly compliance window that allows employers to correct past omissions without the burden of heavy penalties, appeal letters or prolonged officer engagement, especially for documents falling within current audit years,” said Lai.
Highlights of PKPS 2026:
☻ Eligibility Period: Documents executed between Jan 1, 2023 and Dec 31, 2025
☻ Programme Window: Jan 1, 2026 to June 30, 2026
☻ Penalty Remission: 100% automatic waiver of penalties upon full payment of stamp duty
☻ No Appeals Required: Remission is system-driven and applied at the payment stage.
☻ Audit Closure: Documents settled under PKPS are exempt from future audits for the relevant years.
☻ Second-Chance Relief: Previously stamped but unpaid documents may be settled without late penalties.
The programme, however, excludes cases involving fraud or tax evasion and penalties paid prior to Jan 1, 2026 are non-refundable.
Lai said: “PKPS 2026 should be viewed by employers as a once-only mercy window to clean up historical documentation risks. Stamp duty non-compliance is often overlooked in employment contracts, yet it carries serious financial and legal exposure during audits.
“This six-month amnesty allows employers to regularise contracts signed between 2023 and 2025 with zero penalties and no appeals, which is unprecedented. Micsea strongly encourages employers to act early, review their contracts and complete stamping through the MyTax e-Duti system well before the 30 June 2026 deadline.”
Lai further cautioned that enforcement trends indicate increasing audit and data-matching activity and employers should not assume similar relief will be available in the future. “Compliance opportunities like this are policy-driven and time-limited. Once the window closes, penalties will resume. Employers who delay may face unnecessary exposure that is entirely avoidable today.”
Micsea advised employers to review all employment-related contracts executed in 2023, 2024 and 2025; identify any unstamped or unpaid instruments; submit and pay stamp duty via the MyTax e-Duti portal and complete payment well before June 30, 2026 to secure full penalty remission and audit closure.
The association said it remains committed to supporting employers in navigating compliance obligations and encourages members to seek professional advice where necessary to ensure accurate and timely disclosure.
