Recent Changes to Tax
and Stamp Duty in Malaysia

What Has Changed in Malaysia?

Malaysia’s recent tax developments include digital administration, revised compliance requirements and selected reliefs for individuals. For businesses and property owners, understanding the procedure can be as important as knowing the tax rate.

This guide highlights selected measures relevant as at 2 October 2026. It is not a complete list of income tax, SST or property tax changes. A budget announcement should also be distinguished from an enacted provision, exemption order or updated administrative guideline.

01 Stamp Duty Moves Towards Self-Assessment

Malaysia introduced the Stamp Duty Self-Assessment System, known as STSDS, in phases from 1 January 2026. Its first phase covers lease or tenancy, security and general stamping instruments.

For instruments within the system, the duty payer or appointed agent submits the return, assesses the duty and pays within the prescribed period. HASiL requires a Tax Identification Number, access through MyTax and retention of the instrument and related records for seven years from payment.

Self-assessment changes responsibility for the assessment process; it does not make every agreement subject to the same rate. Before filing, identify the instrument, check available relief and keep the calculation with the signed document.

02 e-Invoice Guidance Has Been Updated

HASiL’s implementation timeline, updated on 30 August 2026, lists taxpayers with annual turnover or revenue below RM3 million as exempt from e-Invoice implementation. Businesses should therefore avoid relying solely on older summaries referring to lower exemption thresholds.

The timeline places the up-to-RM5 million implementation phase at 1 January 2026, subject to applicable exemptions and detailed guideline rules. Confirm your position using the current guidance, especially where ownership structures, related entities or new operations are involved.

e-Invoice is a reporting and validation framework, rather than a separate tax on every invoice. Review customer data, transaction records and accounting workflows. An implementation exemption does not remove ordinary income tax obligations.

03 Individual Dividend Income Needs Review

From YA 2025, individual dividend income exceeding RM100,000 annually falls within the new dividend tax framework, with a 2% rate on the relevant taxable dividend income. The calculation follows specific rules and applicable exclusions.

Do not simply multiply every dividend receipt by 2%. Identify the relevant dividends, determine the taxable amount and check exemptions. Companies paying Malaysian dividends must also consider their dividend certificate or voucher obligations.

Individual shareholders should retain vouchers and distinguish investment distributions by source and type. This is particularly useful where income comes from several companies or is received through a nominee.

04 First-Home Loan Interest Relief Is Available

A recent personal income tax relief covers qualifying interest on a loan for a first residential home. The qualifying sale and purchase agreement period runs from 1 January 2025 to 31 December 2027.

The annual limit is RM7,000 for a home priced up to RM500,000, or RM5,000 for a home priced above RM500,000 and up to RM750,000. Eligibility conditions apply, including the relevant residence and home-use requirements.

HASiL’s Public Ruling 7/2025 explains the three consecutive years of assessment beginning with the year interest is first paid. This relief concerns qualifying interest, not the entire housing instalment, and is separate from stamp duty exemptions.

05 Selected Household Reliefs Expand for YA 2026

Changes for YA 2026 and YA 2027 include qualifying expenditure on household food waste grinders and home CCTV under the relevant personal relief provision.

These expenses share an annual RM2,500 cap with other expenditure falling within that provision. Each of these two item categories can be claimed once within the specified two-year period, subject to the conditions and supporting receipts.

Before buying an item based on an expected deduction, check its eligibility and your other claims under the same cap. Tax relief reduces taxable income; it is not a reimbursement of the purchase price.

What Should Businesses and Individuals Do Now?

Coordinate legal and accounting advice where a transaction involves both document drafting and tax treatment. Clear responsibility for filing, payment and record retention helps avoid missed steps.

Frequently Asked Questions