Employment Contracts Must Be Stamped Duty in Malaysia: 2025 & 2026 Reminder

Malaysian business owners, take note: all employment contracts must be stamped duty under the Stamp Act 1949. Non-compliance can lead to penalties from the Inland Revenue Board (LHDN), so action is required now.

Stamping 2025 Employment Contracts

• Contracts signed during 2025 must be stamped.

• Stamp before 31 December 2025 to avoid late-stamping penalties.

• Contracts signed before 1 January 2025 are exempt.

Stamping Contracts from 2026 Onwards

• All new contracts must be stamped within 30 days of signing.

• Stamp duty is RM10 per contract.

• Penalties for late stamping:

  • 31 days to 3 months late → RM50 or 10% of duty

  • More than 3 months late → RM100 or 20% of duty

Note: The 2026 Budget proposes raising the exemption threshold to RM3,000/month, but this is not yet legally effective. Until gazetted, all contracts must be stamped.

How Alena Consultancy & Services Can Support Your Business

Alena Consultancy & Services provides a full suite of support to help your business seamlessly comply with these new obligations:

✅ Stamp Duty Submission & Management
We handle the entire stamping process through LHDN’s STAMPS online system, including:

• Preparation of documents
• Electronic submission
• Tracking and confirmation of stamp duty payments

Take Action Today

The clock starts ticking the moment an employment contract is signed. Don’t leave compliance to chance.
Let Alena Consultancy & Services help you stay ahead.
Contact us today for a free initial consultation

Tell: +60183755170
Email: [email protected]
Website: https://www.alena.com.my

Based in Johor, Malaysia, Alena Consultancy & Services stands out as a reliable consultancy firm, providing a comprehensive suite of services such as HR outsourcing, consultation, and meticulous payroll processing, ensuring efficiency and effectiveness for businesses of all sizes.

Posted by Alena Consultancy & Services on 7 Dec 25