KUCHING: The Malaysian Industrial, Commercial and Service Employers Association (MICSEA) has expressed strong support for the government’s decision to exempt stamp duty on employment contracts signed before 1 January 2025.
MICSEA president YK Lai stated that the move demonstrates the government’s commitment to business facilitation while maintaining regulatory compliance through proper enforcement. He noted that many employment agreements between employers and employees had not been stamped in accordance with the First Schedule of the Stamp Act 1949.
Under the leadership of the Madani Government, the Ministry of Finance has granted full stamp duty exemption and penalty waivers for all employment contracts signed before 1 January 2025. This measure is implemented under Subsection 80(1A) and Subsection 47A(2) of the Act.
Contracts signed between 1 January and 31 December 2025 will remain subject to stamp duty; however, late penalty charges will be waived if the documents are stamped by 31 December 2025.
Lai added that starting from 1 January 2026, all contracts will fall under the new Self-Assessment System for Stamp Duty (STSDS), under which full stamp duty and any applicable penalties will be strictly enforced.
He said this exemption and the accompanying waiver reflect the government’s genuine intent to foster a collaborative environment while promoting fairness in enforcement. In light of this, Lai encouraged all employers and human resource practitioners to take advantage of the exemption period to review and regularise employment contracts, ensuring full compliance before the implementation of STSDS in 2026.
-Borneo Post
