IRB Waives Penalty for Late Stamping of Employment Contracts — Until 31 Dec 2025 Only

IRB (LHDN) has confirmed a one-time penalty waiver for employers who late-stamp existing employment contracts. Just make sure it’s done by 31 December 2025.

No extension will be given after this grace period.

What Must Be Stamped:

• Employment contracts
• Renewal letters (if treated as new)
• Fixed-term contracts

What’s Exempted:

• Offer letters
• Bonus letters
• Annual increment letters
• Confirmation letters
• Loan letters (if not tied to employment contract)

For New Contracts:

• Must be stamped within 30 days of signing.
• Penalties apply after that (RM50 or 10%, RM100 or 20%).

Action for Employers

• Review all contracts from 2022 onwards.
• If unstamped, submit for stamping with a request letter to waive penalties.

Starting 1 January 2026, IRB will implement self-assessment for stamp duty. Audits may go back five years.

Read our past blogs for full insights:
Part 1–7: ktp.com.my/blog

KTP Reminder: Stamp now to avoid penalty and compliance issues later.

Credit: 南洋商报 Nanyang Siang Pau (2/6/2025)

Read the full content in our blog
https://www.ktp.com.my/blog/stamp-act-malaysia-2024-part8/03june2025