The Inland Revenue Board of Malaysia (IRB) will waive stamp duty for employment contracts finalised before Jan 1, 2025, following audit findings showing widespread non-compliance.
This move comes as part of a broader audit initiative under the newly introduced Rangka Kerja Audit Duti Setem (RKADS), launched on Jan 1, 2025, and in preparation for the Sistem Taksir Sendiri Duti Setem (STSDS), which begins Jan 1, 2026.
The waiver, granted under Section 80(1A) of the Stamp Act 1949, is aimed at reducing the burden on employers, as many contracts had not been stamped in accordance with Item 4 of the First Schedule of the Act, which requires a RM10.00 duty.
For employment contracts finalised between Jan 1 and Dec 31, 2025, stamp duty applies, but late stamping penalties will be remitted if completed by year-end. From Jan 1, 2026 onward, full stamp duty and penalties for late stamping will be enforced.
Employers are advised to review and update all employment contract documents to ensure compliance with the Stamp Act 1949.
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