(TAX UPDATE) Boss, Why Your Engagement Letter Got Stamp One?

Introduction

Last week, one client called me.

Not because of tax.

Not because of audit.

Not because of e-Invoice.

He called me because of one small chop.

Our letter of engagement was duly stamped.

He asked:

“Boss, why your engagement letter got stamp one? Last time no stamp also can.”

I laughed.

Because this one small question tells me a lot about how many SMEs still look at stamp duty.

To many bosses, stamp duty only appears when buying property, signing tenancy agreement, or taking bank loan.

Why do we do this?

Not because we suddenly become very rajin.

Not because we want to make the file look more professional.

But because the compliance game has changed.

Under self-assessment, businesses cannot simply rely on the old habit:

“Last time also like that.”

That sentence is dangerous.

Today, the better question is:

“Should this document be stamped?”

And this is where many SMEs may be exposed.

Because stamp duty is not only about property.

It is about written instruments.

Any written document that creates rights, duties, obligations, appointment, payment terms, service terms, rental terms, settlement terms, or commercial understanding may need to be reviewed.

So when we stamp our engagement letter, it is not just about KTP.

It is also a reminder to our SME clients.

Look at your own documents.

Your tenancy agreement.

Your supplier agreement.

Your loan agreement.

Your staff contract.

Your repayment arrangement with debtor.

Your service contract with customer.

Your shareholder or director agreement.

If these documents are not properly reviewed, signed, stamped and kept, don’t be surprised when one small document becomes one big headache..

So when my client asked:

“Boss, why stamped?”

My answer was simple:

“Because now, better do properly.”

Last time no need?

Maybe.

PS: Authored by Mr Koh Teck Peng, Group Principal of KTP, in his personal LinkedIn post.

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