Q: 

I am a sole proprietor with 4 employees. I have employed them since January 2025, but I did not prepare any written employment contracts for them. Am I required to pay any stamp duty?

A: 

If there has never been any written and executed employment contract, there is no chargeable instrument and therefore no stamping is required. However, if you wish to formalise the employment relationship with a written employment contract, the employment contract executed will be subject to stamp duty. 

I am a sole proprietor with 3 employees. I have employed them in year 2023. Is stamping required for these executed employment contracts?

A: 

Generally, an employment contract is subject to stamp duty. However, if you executed the employment contracts with your employees before 1 January 2025, the employment contracts are exempt from stamp duty. An exempt employment contract may be submitted to LHDN for assessment and endorsement to obtain a stamp duty exemption certificate.