Lai says the clarification is both timely and essential, particularly for employers seeking to comply with legal requirements without unnecessary confusion. — Bernama photo

KUCHING (July 5): Internship agreements are not required to be stamped as they do not constitute a formal employer-employee relationship, said the Malaysian Industrial and Commercial Employers Association (MICSEA), citing clarifications from the Inland Revenue Board (LHDN) FAQs.

MICSEA president YK Lai said the clarification is both timely and essential, particularly for employers seeking to comply with legal requirements without unnecessary confusion.

“This clarification is crucial and welcomed, as it ensures that companies can continue to offer internships without administrative hurdles or added cost implications,” he said in a statement.

“With this, many employers can now confidently enhance their internship programmes without fear of non-compliance. It also ensures that internship opportunities will not be disrupted or deterred, supporting the government’s initiative to prepare students to be industry-ready upon graduation.”