EXEMPTION FROM STAMP DUTY FOR EMPLOYMENT CONTRACT FINALIZED BEFORE 1 JANUARY 2025

The Inland Revenue Board of Malaysia (HASiL) has issued an official circular to address recent issues related to stamp duty compliance.

In a recent audit finding, HASiL observed a significant number of employment contract documents that were not duly stamped. To ease the burden on employers, the Ministry of Finance has made the following decisions:

1. Employment contracts finalized before 1 January 2025 are granted stamp duty exemption under the authority of Minister of Finance, pursuant to subsection 80(1A) of the Stamp Act 1949. In addition, penalties for late stamping will be remitted under the authority granted to the Collector of Stamp Duty pursuant to subsection 47A(2) of the same Act.
2. Employment contracts finalized from 1 January 2025 until 31 December 2025 are subject to stamp duty and granted remission of late stamping penalties under the authority of the Collector of Stamp Duty pursuant to subsection 47A(2) of the Stamp Act 1949, provided that the contract documents are stamped on or before 31 December 2025; and
3. Employment contracts finalized from 1 January 2026 onwards will be subjected to stamp duty, and penalties will be imposed for late stamping of employment contracts.

All employers are strongly advised to review and update all employment contract documents that have been and will be signed to ensure compliance with the stamping requirements under the Stamp Act 1949.

For any inquiries, members may contact HASiL via:

1. Hasil Contact Centre (HCC) at +603-8911 1000
2. HASiL, Live Chat
3. Feedback Form on the official HASiL portal at quick link: https://maklumbalaspelanggan.hasil.gov.my/Public/

download:

MBAM Circular click here

official circular issued by HASiL click here