As a tenant or landlord, it is important to understand the stamp duty rates for tenancy agreements. Stamp duty is a tax imposed by the government on legal documents, including tenancy agreements. In Malaysia, stamp duty rates for tenancy agreements are determined based on the duration of the tenancy period.
For tenancy agreements with a duration of less than one year, the stamp duty rate is RM1 for every RM250 of the rental amount or part thereof. For example, if the monthly rental amount is RM2,000, the stamp duty payable would be RM16 (RM1 for every RM250, rounded up to the nearest ringgit).
For tenancy agreements with a duration of one year or more, the stamp duty rate is calculated based on the total rental amount for the entire tenancy period. The stamp duty rate is RM2 for every RM1,000 of the total rental amount, or part thereof. For example, if the total rental amount for a two-year tenancy agreement is RM48,000, the stamp duty payable would be RM192 (RM2 for every RM1,000, rounded up to the nearest ringgit).
It is worth noting that stamp duty rates for tenancy agreements in Malaysia have been revised several times in recent years. In 2020, the government announced a stamp duty exemption for residential rental agreements with a monthly rental of up to RM2,500, effective from July 1, 2020 to December 31, 2021. This means that if the monthly rental amount is RM2,500 or less, the tenancy agreement is exempt from stamp duty.
Tenants and landlords should also be aware that stamp duty for tenancy agreements must be paid within 30 days from the date of execution of the agreement. Failure to pay stamp duty may result in legal consequences, including fines and legal disputes.
In conclusion, understanding the stamp duty rates for tenancy agreements is crucial for tenants and landlords in Malaysia. It is important to calculate the stamp duty payable accurately and pay it within the stipulated time frame. By doing so, you can ensure that your tenancy agreement is legally binding and avoid any unnecessary legal trouble in the future.