Stamp Duty on Employment Contracts in Malaysia

Understanding Stamp Duty for Employment Agreements
March 17, 2026 by
Stamp Duty on Employment Contracts in Malaysia
CONZLAB BERHAD 202301040401 (1534320P), Mira

In Malaysia, stamp duty is a tax imposed on certain legal documents, including employment contracts. It is governed by the Inland Revenue Board of Malaysia (LHDN) under the Stamp Act 1949.

Stamp duty ensures that legal documents are recognized by law and can be used in court if necessary.

What Documents Require Stamp Duty?

For employment purposes, stamp duty may apply to:

  • Employment contracts (full-time, part-time, or contract-based)
  • Service agreements with fixed terms
  • Memorandums of understanding relating to employment

Note: Most standard employment contracts with salary terms attract a fixed stamp duty rate.

How Much Is the Stamp Duty?

The stamp duty for employment contracts is generally RM10 per instrument for standard employment agreements.

However:

  • Contracts longer than 3 years may require additional considerations.
  • Any amendment or renewal may also require separate stamping.

It is important to check the exact requirements with Inland Revenue Board of Malaysia (LHDN).

Who Is Responsible for Paying the Stamp Duty?

  • Typically, the employer is responsible for stamping the employment contract.
  • Failure to stamp may result in penalties or the contract being inadmissible as evidence in court.

Why Stamp Duty Is Important

  1. Legal Recognition – Stamped contracts are officially recognized by law.
  2. Evidence in Disputes – A stamped employment contract can be used in court in case of disputes.
  3. Avoid Penalties – Non-compliance with stamp duty laws can result in fines.

How to Pay Stamp Duty

  • Visit LHDN counters and submit the employment contract for stamping.
  • Use e-Stamping via MyStamp system provided by Inland Revenue Board of Malaysia for online stamping.
  • Keep a copy of the stamped contract as proof for legal and compliance purposes.

Need Help With Stamp Duty for Employment Contracts?

Not sure how to stamp your employment agreements correctly? We’re here to help.

Our team can assist with stamp duty assessment, document preparation, and submission to the Inland Revenue Board of Malaysia (LHDN) to ensure your contracts are properly stamped and compliant.

Contact us today to make your employment contract compliance simple and hassle-free.

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Stamp Duty on Employment Contracts in Malaysia
CONZLAB BERHAD 202301040401 (1534320P), Mira March 17, 2026
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