On 7 August 2026, the Inland Revenue Board (“IRB”) issued a media statement clarifying the stamp duty and endorsement requirements for employment contracts and instruments falling under the Exemption and General Exemption categories in the First Schedule to the Stamp Act 1949 (“SA 1949”).
1. Instruments under the Exemption category
Instruments specifically listed as exempt in the First Schedule do not need to be stamped or endorsed. This includes employment contracts where the employee’s monthly remuneration does not exceed RM3,000.
2. Instruments under the General Exemption category
Instruments relying on a general exemption under Section 35 of the SA 1949 remain subject to endorsement. Although no stamp duty is payable, the instrument must be submitted to the IRB so that eligibility for the exemption can be confirmed.
3. Employment contracts with monthly remuneration above RM3,000
Only the principal instrument or master contract containing the agreed terms and conditions of employment needs to be stamped and endorsed. Ancillary documents relating to the same employment arrangement do not need to be stamped or endorsed.
