(Tax Update) Malaysia Stamp Duty Overhaul – Part 5
Employment Contracts Must Now Be Stamped (Effective 1 Jan 2025)
Source: FMM & LHDNM

1. Stamp duty of RM10 applies to all employment contracts/appointment letters.
2. Must be stamped within 30 days from execution date.
3. Applies to local, foreign, short-term, long-term, and periodic contracts.
4. Internship letters and foreign worker master contracts are still under review.
5. Penalty if stamped late (after 3 months): RM100 or 20% of duty, whichever higher.
6. Penalties are system-generated, but appeals can be submitted online.
7. Pre-2025 contracts still in force should be stamped; penalty waiver may apply.
8. Current exemption threshold (RM300/month) is outdated.
9. FMM proposed raising exemption to RM10,000/month – under review.
10. For resigned staff, only stamp contracts kept for legal/HR use.
11. Employers must review contracts, ensure timely stamping, and retain stamped records.

Read the full content in our blog
https://www.ktp.com.my/blog/stamp-act-malaysia-2024-part5/26may2025