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Employment Contract Stamp Duty Update – What Employers Need to Know

Posted LnCoadmin

Good news! LHDN (Malaysia’s Inland Revenue Board) has released a clear timeline and penalty rules so you know exactly what to do.

The government has announced that starting from 2025, all employment contracts must pay RM10 stamp duty. Many people are asking:
“When do I need to stamp the contract? Will I be fined if I stamp late?”

Let’s read on to find out more!

𝟏. 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭𝐬 𝐒𝐢𝐠𝐧𝐞𝐝 𝐁𝐞𝐟𝐨𝐫𝐞 𝟏 𝐉𝐚𝐧 𝟐𝟎𝟐𝟓

  • No stamp duty needed

𝟐. 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭𝐬 𝐒𝐢𝐠𝐧𝐞𝐝 𝐁𝐞𝐭𝐰𝐞𝐞𝐧 𝟏 𝐉𝐚𝐧 𝐚𝐧𝐝 𝟑𝟏 𝐃𝐞𝐜 𝟐𝟎𝟐𝟓

  • You need to pay RM10 stamp duty.
  • The contract must be stamped before the end of 2025.
  • If you stamp late but still within 2025, no penalty will be charged.

**This is the government’s grace period, so don’t delay!

𝟑. 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭𝐬 𝐒𝐢𝐠𝐧𝐞𝐝 𝐎𝐧 𝐨𝐫 𝐀𝐟𝐭𝐞𝐫 𝟏 𝐉𝐚𝐧 𝟐𝟎𝟐𝟔

  • RM10 stamp duty is still required.
  • If you stamp late, penalties will be imposed.
  • The penalty amount depends on how late you stamp and will be decided by LHDN.

*If you haven’t stamped your contracts yet, arrange it now!
*Don’t risk paying penalties later.

**Last Updated on 06.06.2025