Employment contracts are also subject to stamp duty.
Basic Requirement (New Rule from 2025)
- Previously, stamping of employment contracts was not mandatory
- Starting from 2025, LHDN requires:
- All employment contracts (both new and existing ones still in use) must be stamped
Existing Contracts (Signed Before 2025)
- Contracts signed before 1 January 2025 must undergo late stamping
- No stamp duty payable and no penalty imposed
Contracts Signed in 2025
- Subject to RM10 stamp duty
- No penalty will be imposed if stamping is completed before 31 December 2025
Rules from 2026 Onwards
- New employment contracts that are not stamped on time will be subject to penalties
- The longer the delay, the higher the penalty
Application Method (Online System)
- No need to visit LHDN counters
- Stamping can be done online via the STAMPS system
- An electronic Stamp Certificate will be issued
⚠️ Note: Starting from 2025, all employment contracts must be stamped to ensure legal compliance and to avoid penalties.