Helping a client address employment letter stamp duty compliance

Following LHDN’s renewed emphasis on employment contract stamp duty compliance in 2025, a client contacted KTP to raise concerns about its employment letters and earlier records. We explained the implications, provided a checklist and assisted with submission and completion checks. The client retained responsibility for the accuracy of its documents and for keeping the completed records.

The result

The client engaged KTP after understanding the issues and the steps needed to address them. We helped organise the submission requirements, checked the documents supplied and assisted with the stamping submissions through completion. The client remained accountable for filing each completed employment document with its corresponding HASiL stamp certificate and supporting payment record.

At a glance

Client: A Malaysian employer

Matter: Stamp duty compliance for employment letters, including earlier records

Context: LHDN’s renewed compliance emphasis in 2025

Service: Compliance explanation, document checklist, submission assistance and completion checks

The challenge

The client was concerned about how LHDN’s renewed compliance emphasis affected its employment letters, including documents issued in earlier years. It needed to understand which records required attention, the implications of delayed stamping and the practical steps to complete the process.

The client needed a clear explanation of its position and practical help with the process. Earlier records could not simply be overlooked: their dates and applicable treatment needed to be considered. Complete and accurate client information was also necessary before the stamping work could proceed.

Our approach

We listened to the client’s concerns. We discussed the issues raised during the call and explained how the stamping requirements affected its employment documentation in practical terms.

We explained the implications and the need to review earlier records. We clarified that the review should cover existing employment letters as well as recent documents. Outstanding stamping requirements needed to be addressed, taking account of the applicable rules and any exemption or relief for the relevant period.

We gave the client a clear checklist. Once the client engaged us, we provided a checklist of the necessary information and documents so that it knew what to prepare and submit.

We checked the documents for submission. We reviewed the information and documents supplied for completeness and consistency and followed up on details needed for submission. The client remained responsible for the accuracy and completeness of its documents.

We assisted with submission and completion checks. We helped submit the employment documents for stamping and checked that the necessary submission steps were properly completed. The client remained responsible for ensuring that every completed document and its corresponding HASiL stamp certificate were properly matched, filed and safely retained for future reference or inspection.

Why this matters today

For instruments executed in Malaysia, the general stamping period is 30 days from execution. Late stamping may attract penalties, subject to applicable relief. Under the later 2025 guidance, employment contracts finalised before 1 January 2025 were exempt from duty with late stamping penalties remitted; exempt contracts could be submitted for endorsement. Contracts finalised during 2025 were subject to duty, with late stamping penalty remission if stamped by 31 December 2025. These distinctions matter when reviewing earlier records as an essential part of addressing the client’s concern.

KTP's View

Clear explanations and a practical checklist helped the client address its concerns and proceed with the submissions. KTP’s role was to assist with the submission process and check completion of the necessary steps. Responsibility for the underlying documents and their safekeeping remained with the client. Keeping each completed employment document together with its corresponding HASiL stamp certificate and supporting payment record makes the completed file easier to retrieve when needed.