Stamp Duty for Tenancy Agreements in Malaysia: A Guide for Landlords and Tenants
If you are a landlord or a tenant in Malaysia, it is important to understand the legalities of renting a property. One of the most important things to consider is the stamp duty for tenancy agreements. Stamp duty is a tax that is imposed on legal documents, including tenancy agreements, by the government. In this article, we will discuss the stamp duty for tenancy agreements in Malaysia, its importance, and how to calculate it.
What is Stamp Duty?
Stamp duty is a tax that is levied on certain legal documents. It is a tax on the document itself, rather than on the transaction that the document relates to. In Malaysia, stamp duty is governed by the Stamp Act 1949 and its regulations.
Why is Stamp Duty Important?
Stamp duty is important because it is a legal requirement. Any document that is subject to stamp duty must be stamped before it can be used as evidence in court. If a document is not stamped, it is not admissible in court, which could lead to legal complications.
Stamp Duty for Tenancy Agreements
In Malaysia, tenancy agreements are subject to stamp duty. The stamp duty for tenancy agreements is calculated based on the total rent payable over the entire tenancy period. The stamp duty rate for tenancy agreements is as follows:
– For tenancy agreements with a term of less than one year: RM1 for every RM250 or part thereof of the total rent payable.
– For tenancy agreements with a term of one year or more: RM2 for every RM250 or part thereof of the total rent payable.
For example, if the monthly rent is RM1,500 and the tenancy agreement is for 2 years, the total rent payable over the entire tenancy period would be RM36,000 (RM1,500 x 24 months). The stamp duty payable would be:
(RM36,000 ÷ RM250) x RM2 = RM288
Stamping the Tenancy Agreement
The stamp duty for tenancy agreements must be paid within 30 days of the agreement being signed. The stamp duty can be paid at any stamp office or through an online portal such as e-Stamping. Once the stamp duty has been paid, the tenancy agreement should be stamped with the official stamp of the stamp office. The stamped document should be kept by both the landlord and the tenant as proof of payment.
In conclusion, stamp duty for tenancy agreements in Malaysia is an important legal requirement that must be adhered to by landlords and tenants. It is calculated based on the total rent payable over the entire tenancy period, and must be paid within 30 days of the agreement being signed. Failure to pay the stamp duty could result in legal complications. As such, it is important for landlords and tenants to understand the stamp duty for tenancy agreements and ensure that it is paid on time.