(TAX UPDATE) The Stamp Duty Panic: How I Handled It at KTP

The Stamp Duty Panic: How I Handled It at KTP

𝗧𝗵𝗲 𝗤𝘂𝗶𝗲𝘁 𝗦𝘁𝗮𝗿𝘁

31 December 2024 - the Stamp Act amendments were gazetted.

I skimmed the update.

“Self-assessment only kicks in on 1 Jan 2026,” I told myself.

Just another tax revamp. We’ve seen many.

Little did I know… the real storm had already begun brewing.

𝗧𝗵𝗲 𝗙𝗶𝗿𝘀𝘁 𝗪𝗮𝗿𝗻𝗶𝗻𝗴

January 2025 - LHDN quietly released the Stamp Duty Audit Framework.

Then came the buzz in my WhatsApp group with fellow tax practitioners:

“Client kena audit already?”
“Tenancy agreement also kena?”
“Even employment contracts being penalised for late stamping?”

I called for an internal review with my team.

“Stamping is no longer just a formality. It’s a real compliance risk now.”

𝗥𝘂𝗺𝗼𝘂𝗿𝘀 𝗛𝗘𝗔𝗧 𝗨𝗣

April 2025 - my HR manager walked into my office, phone in hand, looking uneasy.

“Boss… IRB already operasi. Taxpayers kena. True ah?”

I nodded.

“Yes. Ground feedback is solid.

They’re not waiting for 2026. Employment contracts, other agreements all under scrutiny.”

I reassured her:

“Let’s hold. Wait for official clarification. No need to panic.”

𝗧𝗵𝗲 𝗔𝗿𝘁𝗶𝗰𝗹𝗲 𝗧𝗵𝗮𝘁 𝗘𝘅𝗽𝗹𝗼𝗱𝗲𝗱

12 May 2025 - The Star published a piece titled “Clearing Up Uncertainties About Stamp Duty.” It went viral.

My phone didn’t stop buzzing.

My HR manager texted:

“Boss, clients asking, what’s our tax position?”

I replied:

“KIV for now. FMM, MEF and others will be engaging LHDN soon.

If your client insists, let them decide based on their risk appetite.

But for KTP ... we wait.”

𝗧𝗵𝗲 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻

6 June 2025 - finally, clarity.

LHDN announced that employment contracts signed before 1 Jan 2025 are exempt from stamp duty and penalties.

I shared the update with the team:

“Good thing we waited.

Now inform all our SME clients who’ve been anxious since April.”

To my HR manager, I said:

“Proceed to stamp our contracts and apply the exemption.”

𝗧𝗵𝗲 𝗡𝗲𝘄 𝗚𝗔𝗠𝗘 𝗕𝗘𝗚𝗜𝗡𝗦

1 January 2026 - the self-assessment regime officially begins.

We held a team briefing.

“Be clear. Be accurate. No second-guessing. Educate clients early.”

𝗧𝗵𝗲 𝗚𝗿𝗲𝘆 𝗔𝗿𝗲𝗮𝘀

Just last week, my audit and tax managers came to me again.

“Boss, what about stamping director’s advance to the company?”

I smiled.

“This is self-assessment.

We keep clients updated through social media and newsletters.

But in the end, it’s their decision. We advise. They act.”

Then came Monday.

My HR manager looked frustrated.

“Boss, even pre-2025 employment contracts still need to be uploaded into the system — even if duty and penalty are waived.”

My answer was the same:

“Our tax position remains — WAIT.

Until LHDN issues a proper FAQ to clear the grey areas.”

𝗠𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀

Every tax change brings panic.

It’s about timing.

It’s about clear communication.

It’s about holding your ground on your tax position until the facts are clearer.

And always…

Update your clients before they ask.

PS : Authored by Mr Koh Teck Peng , the group principal, in his personal LinkedIn post https://bit.ly/44rTYyD

Visit Us

Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients