Stamp Act 1949

Malaysia’s stamp duty framework is undergoing its most significant transformation in decades. Effective 1 January 2026, everyone business - from SMEs to MNEs will require to enhance stamp duty compliance rules, higher compliance audit exposure, and a shift toward self-assessment regime. 

If your business executes contract or agreement for leases, services, loan arrangements, employment letters, acquisition of property, and transfer of shares (not an exhaustive listing), these changes apply to you.

 Types of Stamp Duty

1. Fixed Duty
   • A flat fee (e.g., RM10) for specific documents such as standard contracts.
2. Ad Valorem Duty
   
• Based on the monetary value of the transaction (e.g., property transfers).

Documents required to be stamped

• Employment Contract (include full time / part time)
• Fixed Term Contract
• Service Contract (includes consultancy, outsourcing, subcontracting, management services)
• Non-Disclosure Agreements (NDA)
• Memorandums of Understanding (MOUs)
• Partnership or Joint Venture Documents
• Tenancy Agreement
• Loan Agreement
• Declaration Letter
• Statutory Declaration
• General Letters of Appointment
• Guarantees Without Property Involvement

Documents exempted to be stamped

• Promotion and Bonus Letter
• Annual Increment Letter
• Letter of Transfer within the Company

Stamp Duty

LHDN's Stamp Duty Audit Framework

Q&As

1. Do all employment contracts need to be stamped?
   
   Yes. All employment contracts (full-time, part-time, fixed-term or short-term) must be stamped under the Stamp Act 1949.
   
   
2. How much stamp duty is payable on an employment contract?
   
   Stamp duty is RM10 per employment contract.
   From 1 January 2026, contracts with monthly salary RM3,000 or below are exempt.
   
   
3. Do employment contracts signed before 2025 need to be stamped?
   
   They still need to be stamped, but no stamp duty or penalty will be charged if stamped by 31 December 2025.
   
   
4. Is there a penalty for late stamping of employment contracts?
   
   Yes. For contracts signed from 1 January 2026, stamping must be done within 30 days. Late stamping will result in penalties.
   
   
5. How can employers stamp employment contracts?
   
   Stamping is done online via LHDN STAMPS https://stamps.hasil.gov.my/stamps/.
   Starting from 1 January 2026, LHDN STAMPS will be fully integrated with MyTax https://mytax.hasil.gov.my/.
   Click Perkhidmatan ezHASiL > Duti Setem > e-Duti Setem

Online Stamping via LHDN STAMPS

Visit the official STAMPS portal: https://stamps.hasil.gov.my/stamps/

1. On the homepage, click 'Daftar ID'.
   
2. Register an company account on the LHDN e-Stamping system.
   
3. Click 'Seterusnya'.
   
4. Fill in registration details, you will receive an email upon approval.
   
5. After login, go to ‘Borang Permohonan’ and select ‘Penyeteman’.
   
6. Select ‘Penyeteman Am’, choose the nearest location and signing date, then click ‘Seterusnya’.
   
7. After fill in the deatils and upload the signed contract, then click ‘Simpan & Hantar’.
   
8. After receiving the email notification, login to your account and click ‘Penyeteman Am’ to proceed payment.
9. Upon payment, download and print the digital stamp certificate or e-Stamp (with barcode).

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