Employment & Stamp Duty 2025: What Employers in Johor Bahru Must Know

Stamp Duty on Employment Contracts in Malaysia

Stamp duty is a statutory tax imposed on legal instruments under the Stamp Act 1949. In Malaysia, all employment contracts must be stamped to be legally enforceable.
 

As a Chartered Accountants Johor Bahru and Tax Consultancy Firm Johor Bahru, we regularly assist employers with stamp duty compliance, tax advisory, and audit matters. Below is a clear and practical guide to help employers stay compliant and avoid unnecessary penalties.

 

📄 What Employment Documents Are Subject to Stamp Duty?

All written employment agreements are subject to stamp duty, including:

• Full-time employment contracts

• Part-time employment contracts

• Contract or project-based workers

• Internship and trainee agreements

⚠️ Stamp duty applies regardless of job position, salary level, or contract duration.

Employers engaging an Accounting Firm Johor Bahru or Tax Agent Johor Bahru early can prevent compliance risks.

 

⏳ Employment Contract Stamping Period

• The 30-day stamping period begins from the date the agreement is executed

• If employer and employee sign on different dates, the later signing date is treated as the execution date

Failure to stamp within the prescribed period will result in penalties.

 

💸 Late Stamping Penalties (Malaysia)

Delay Period	Penalty
31 days – 3 months	RM50 or 10% of stamp duty (whichever is higher)
More than 3 months	RM100 or 20% of stamp duty (whichever is higher)

Timely stamping protects employers from unnecessary costs and audit exposure.

 

⚠️ Risks of Non-Compliance with Stamp Duty

Employers who fail to stamp employment contracts may face:

• Increased risk of LHDN tax audit services Johor Bahru

• Penalties and compounded costs

• Employment contracts being unenforceable in legal disputes

Proper stamping safeguards both employer and employee rights

 

📝 Employment Contract Stamp Duty Stamping Procedure

1. Register an account at
   👉 https://stamp.hasil.gov.my

2. Upload the signed employment contract

3. Select document type: “Employment Contract”

4. Submit for adjudication

5. Make payment via FPX or Virtual Account

6. Download and attach the official stamp certificate

💼 Need Professional Help with Employment Contract Stamping?

As a licensed Tax Agent Johor Bahru, Audit Firm Johor Bahru, and Accounting Firm Johor Bahru, we provide comprehensive solutions including:

• Employment contract stamping & stamp duty advisory

• Corporate & personal tax compliance

• Tax audit services Johor Bahru

• Backlog accounting services Johor Bahru

• Company incorporation services Johor Bahru

• Company set up Johor Bahru & HR documentation support

📞 Contact us today to ensure your employment contracts and business operations are fully compliant and professionally managed.