Stamp Duty on Employee Offer Letters & Employment Contracts (Malaysia 2025)

Do employee offer letters need stamp duty?
Yes—if the letter is binding and creates an employer–employee relationship, it is treated as an employment contract under the Stamp Act 1949 and must be stamped.

Stamp duty amount:

• RM10 per original copy (Schedule I, Stamp Act 1949).

• Duplicates are RM10 if the original is stamped.

Who pays?
Normally the employer, since they issue the letter first.

Deadline:

• Signed in Malaysia → Stamp within 30 days.

• Signed overseas → Stamp within 30 days of being received in Malaysia.

Exemption & grace period (2025):

• Contracts finalized before 1 Jan 2025: fully exempt.

• Contracts signed 1 Jan – 31 Dec 2025: penalty waiver if stamped by 31 Dec 2025 (RM10 still applies).

• From 1 Jan 2026 onward: normal duty and late penalties apply.

Late penalty (general):

• Within 3 months: higher of RM50 or 10% of duty.

• After 3 months: higher of RM100 or 20% of duty.

How to e-stamp (STAMPS):

1. Login/register at stamps.hasil.gov.my

2. Select General Stamping → Employment Contract

3. Upload the signed letter

4. Pay online (FPX/VA)

5. Download stamp certificate & attach to original

Important: An unstamped contract generally cannot be admitted in court until stamped and penalties paid.