IRB makes stamping of job contracts mandatory from 2026
This directive follows the phased implementation of the Stamp Duty Self-Assessment System (STSDS), as outlined in the 2025 Budget.
In a statement today, the IRB said it had begun comprehensive stamp duty audit activities nationwide since January, following the issuance of the Stamp Duty Audit Framework (RKADS).
"Through these audit activities and compliance operations, one of the key findings is that many employment contracts have not been stamped as required under Item 4, First Schedule of the Stamp Act 1949, which stipulates a stamp duty of RM10," the IRB said.
To ease the burden on employers, the Ministry of Finance has agreed to exempt employment contracts executed before Jan 1, 2025, from stamp duty.
This exemption is granted under the powers of the Finance Minister in subsection 80(1A) of the Stamp Act 1949, while the authority to remit late-stamping penalties falls under subsection 47A(2), which empowers the Collector of Stamp Duty.
Employment contracts finalised between Jan 1 and Dec 31, 2025, will still be subject to stamp duty. However, the IRB will grant a remission of late-stamping penalties, provided the contracts are stamped by Dec 31, 2025.
From Jan 1, 2026, all employment contracts must be stamped promptly, as any delays will result in penalties.
In light of these developments, the IRB has urged employers to review and update existing and upcoming contracts to ensure full compliance with the Stamp Act 1949.
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