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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