Latest news with #RKADS
New Straits Times
2 days ago
- Business
- New Straits Times
IRB makes stamping of job contracts mandatory from 2026
PUTRAJAYA: The Inland Revenue Board (IRB) has announced that all employment contracts between employers and employees must be stamped from Jan 1, 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.
Borneo Post
3 days ago
- Business
- Borneo Post
IRB: Compulsory for employment contracts to be stamped effective next year
IRB said it has already begun comprehensive stamp duty audit activities nationwide since January this year, following the issuance of the Stamp Duty Audit Framework (RKADS). – Bernama photo PUTRAJAYA (June 6): The Inland Revenue Board (IRB) has announced that all employment contracts between employers and employees must be stamped starting Jan 1, 2026. This directive is in line with 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 has already begun comprehensive stamp duty audit activities nationwide since January this year, following the issuance of the Stamp Duty Audit Framework (RKADS). 'Through the audit activities and compliance operations, one of the key findings has been that many employment contract documents between employers and employees have not been stamped as required under Item 4, First Schedule of the Stamp Act 1949, where the stamp duty is set at RM10,' according to the statement. It 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 obligations. This requirement is enforced based on the powers granted to the Minister of Finance under subsection 80(1A) of the Stamp Act 1949 and the authority to remit late stamping penalties provided to the Collector of Stamp Duty under subsection 47A(2) of the Stamp Act 1949. In addition, employment contracts finalised from Jan 1, 2025, to Dec 31, 2025, will be subject to stamp duty. However, a remission of late stamping penalties will be granted, provided that the employment contracts are stamped on or before December 31, 2025. This relief is exercised under the powers of the Collector of Stamp Duty under subsection 47A(2) of the Stamp Act 1949. According to the IRB, starting Jan 1, 2026, employment contracts finalised from that date onwards will be subject to stamp duty, and any delays in stamping will result in penalties being imposed. In light of these developments, the IRB urges all employers to review and update existing and upcoming employment contracts to ensure full compliance with stamping requirements as stipulated under the Stamp Act 1949. – Bernama audit employment inland revenue board stamp
