(Tax Update) Malaysia Stamp Duty Overhaul : Self-Assessment and Higher Penalties Part 10

IRB Guideline is Out: Stamp Duty Exemption for Old Employment Contracts!

LHDN just dropped an important update that might affect your HR documents — especially your employment contracts.

What’s new?
If your employment contract was finalised before 1 Jan 2025, you’re exempted from stamp duty (RM10 under Item 4, First Schedule, Stamp Act 1949). No penalty for late stamping too.

But there’s a catch for newer contracts:

011 Jan – 31 Dec 2025 contracts

• Still need to be stamped
• No penalty IF stamped before 31 Dec 2025

021 Jan 2026 onwards

• No more leniency
• Stamp duty applies
• Late stamping = penalty

Why this matters
LHDN’s Stamp Duty Audit is already in full swing. Many employers were caught off guard … contracts with no stamps.

03Action:

• Check all past and current employment contracts
• Stamp them before year-end if needed

Past blog on Stamp Duty
16 April 2025 Malaysia Stamp Duty Overhaul : Self-Assessment and Higher Penalties
https://www.ktp.com.my/blog/malaysia-stamp-duty-self-assessment/16apr2025

16 May 2025 Malaysia Stamp Duty Overhaul : Self-Assessment and Higher Penalties Part 2
https://www.ktp.com.my/blog/stamp-act-malaysia-2024-part2/16may2025

20 May 2025 Malaysia Stamp Duty Overhaul : Self-Assessment and Higher Penalties Part 3 https://www.ktp.com.my/blog/stamp-act-malaysia-2024-part3/20may2025

21 May 2025 Malaysia Stamp Duty Overhaul : Self-Assessment and Higher Penalties Part 4

https://www.ktp.com.my/blog/stamp-act-malaysia-2024-part4/21may2025

26 May 2025 Malaysia Stamp Duty Overhaul : Self-Assessment and Higher Penalties Part 5

https://www.ktp.com.my/blog/stamp-act-malaysia-2024-part5/26may2025

27 May 2025 Malaysia Stamp Duty Overhaul : Self-Assessment and Higher Penalties Part 6

https://www.ktp.com.my/blog/stamp-act-malaysia-2024-part6/27may2025

29 May 2025 Malaysia Stamp Duty Overhaul : Self-Assessment and Higher Penalties Part 7

https://www.ktp.com.my/blog/stamp-act-malaysia-2024-part7/29may2025

3 June 2025 Malaysia Stamp Duty Overhaul : Self-Assessment and Higher Penalties Part 8

https://www.ktp.com.my/blog/stamp-act-malaysia-2024-part8/03june2025

6 June 2025 Malaysia Stamp Duty Overhaul : Self-Assessment and Higher Penalties Part 9

https://www.ktp.com.my/chineseblog/stamp-duty-self-assessment-part9/6june2025

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