MICSEA hails stamp duty exemption for pre-2025 employment contracts
Lai says the decision reflects the government's commitment to supporting businesses while ensuring regulatory compliance through proper enforcement. – Bernama photo
KUCHING (June 7): The Malaysian Industrial, Commercial and Service Employers Association (MICSEA) has lauded the government's move to grant stamp duty exemptions for employment contracts signed before Jan 1, 2025.
Its president YK Lai said the decision reflects the government's commitment to supporting businesses while ensuring regulatory compliance through proper enforcement.
'Recognising the high volume of employment contracts between employers and employees that were not stamped as required under the First Schedule of the Stamp Act 1949, the Ministry of Finance, under the leadership of the Madani Government, has decided to grant full stamp duty exemption and penalty waivers for employment contracts signed before Jan 1, under Subsection 80(1A) and Subsection 47A (2),' he said in a statement yesterday.
He added that contracts signed between Jan 1 and Dec 31, 2025, will still be subject to stamp duty, but late penalty charges will be waived provided the documents are stamped by Dec 31 this year.
Meanwhile, Lai noted that for contracts signed from Jan 1, 2026, onwards under the new Self-Assessment System for Stamp Duty (STSDS), full stamp duty and applicable penalties will be enforced.
He said the exemption and penalty waiver for pre-2025 contracts demonstrates the government's sincere commitment to fostering a collaborative environment and ensuring fair enforcement.
As such, he urged all employers and human resource professionals to use this opportunity to review and update all employment contracts to ensure full compliance ahead of the 2026 STSDS implementation. lead MICSEA stamp duty exemptions
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