Malaysian Inland Revenue Board (LHDN) clarifies that employment contracts are subject to a RM10 stamp duty, effective January 1, 2025

LHDN Lembaga Hasil Dalam Negeri has issued a media statement confirming that employment contracts are chargeable with stamp duty of RM10. The Ministry of Finance has decided to grant the following exemptions and waivers:

(1) Employment contracts executed before 1 Jan 2025 are exempted from stamp duty based on the authority given to the Minister of Finance under subsection 80(1A) of the Act; and any late stamping penalty will be waived based on the authority given to the Collector of Stamp Duty under subsection 47A(2) of the Act;

(2) Employment contracts executed from 1 Jan 2025 until 31 Dec 2025 are subject to stamp duty, but are granted a waiver of late stamping penalty based on the authority given to the Collector of Stamp Duty under subsection 47A(2) of the Act, provided that the employment contract documents are stamped on or before 31 Dec 2025; and

(3) Employment contracts executed from 1 Jan 2026 onwards will be subject to stamp duty and any late stamping of the employment contracts will be subject to the applicable penalty.

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