Malaysian business owners, take note: all employment contracts must be stamped duty under the Stamp Act 1949. Non-compliance can lead to penalties from the Inland Revenue Board (LHDN), so action is required now.
Stamping 2025 Employment Contracts
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Contracts signed during 2025 must be stamped.
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Stamp before 31 December 2025 to avoid late-stamping penalties.
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Contracts signed before 1 January 2025 are exempt.
Stamping Contracts from 2026 Onwards
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All new contracts must be stamped within 30 days of signing.
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Stamp duty is RM10 per contract.
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Penalties for late stamping:
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31 days to 3 months late → RM50 or 10% of duty
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More than 3 months late → RM100 or 20% of duty
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Note: The 2026 Budget proposes raising the exemption threshold to RM3,000/month, but this is not yet legally effective. Until gazetted, all contracts must be stamped.
How Alena Consultancy & Services Can Support Your Business
Alena Consultancy & Services provides a full suite of support to help your business seamlessly comply with these new obligations:
Stamp Duty Submission & Management
We handle the entire stamping process through LHDN’s STAMPS online system, including:
- Preparation of documents
- Electronic submission
- Tracking and confirmation of stamp duty payments
Take Action Today
The clock starts ticking the moment an employment contract is signed. Don’t leave compliance to chance.
Let Alena Consultancy & Services help you stay ahead.
Contact us today for a free initial consultation
Tell: +60183755170
Email: hello@alena.com.my
Website: https://www.alena.com.my
