Boss forgot to affix stamp duty and don’t want a penalty? Here’s a 5-minute “appeal letter” to get 100% waiver!

Under the Stamp Duty Act 1949, an employment contract must be stamped within 30 days of signing. Otherwise, the business may be fined RM 50 – 100 or 10 – 20% of the unpaid duty——whichever is higher.

Good news: It’s not mandatory to pay the penalty! If you have a reasonable explanation, you can write an appeal letter (Surat Rayuan) with supporting documents to the Inland Revenue Board (LHDN) and request a waiver.

📝 7 Steps to Write an Appeal Letter

1. Recipient info

Address to: Lembaga Hasil Dalam Negeri Malaysia

2. Your company’s details

• Full company name
• Registration number (SSM)
• Company address and contact details

3. Subject line

“Rayuan Pengurangan/ Pembatalan Penalti Duti Setem bagi Surat Tawaran Pekerjaan”
(Appeal for Reduction/ Cancellation of Stamp Duty Penalty on Offer Letter)

4. Explanation of events (brief background)

• The date the company hired the employee and signed the offer letter
• Why the stamp duty was delayed (e.g. internal oversight, unfamiliarity with regulation, HR turnover)
• That upon realization, the company promptly affixed the stamp duty
• Stress that it was not willful tax evasion, merely a procedural lapse

5. Formal request

• State your company’s willingness to comply
• Humbly request LHDN to waive or reduce the penalty
• Express sincere apologies

6. Supporting documents

• Copy of the Offer Letter
• Stamp duty evidence (showing the duty was paid)
• Company registration certificate (if required)

7. Signature documents

• Signature of person responsible
• Designation (e.g., HR Supervisor/ Manager)
• Company stamp

Sample letter template available

Don’t worry if you’ve never written one——we’ve prepared a template for you! Click the download link in the original article to get it.

Bonus: 1-hour crash course on stamp duty & CP22 filing

Many employers think that sending an Offer Letter is enough——but you also need to handle stamp duty and submit the CP22 form to notify LHDN of a new hire.

In our 1-hour online workshop, you’ll learn:

• What is stamp duty and why you need it for Offer Letters
• Stamp duty procedures & deadline
• How to correctly submit the CP22 form
• Consequences of missing stamp duty or CP22 filing
• Free Offer Letter template included

Use Promo Code “S88” for RM100 (discounted from RM188).

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