When renting a property in Malaysia, there are several legal requirements that both the landlord and tenant need to comply with. One of these requirements is the calculation and payment of stamp duty for the tenancy agreement. Stamp duty is a form of tax that is imposed on various types of legal documents and transactions.
In Malaysia, the Stamp Act 1949 governs the imposition of stamp duty on various types of instruments, including tenancy agreements. The amount of stamp duty payable for a tenancy agreement depends on the duration of the tenancy and the annual rent payable.
For a tenancy agreement with a tenure of less than one year, the stamp duty payable is RM1 for every RM250 of the annual rent or part thereof. For example, if the annual rent is RM10,000, the stamp duty payable would be RM40 (i.e. RM1 for every RM250, rounded up to the nearest RM1).
For a tenancy agreement with a tenure of one year or more, the stamp duty payable is calculated based on the total rent payable over the duration of the tenancy. The stamp duty payable is RM2 for every RM1,000 of the total rent payable or part thereof. For example, if the total rent payable over a three-year tenancy is RM36,000, the stamp duty payable would be RM72 (i.e. RM2 for every RM1,000, rounded up to the nearest RM2).
It is important to note that stamp duty must be paid within 30 days of the execution of the tenancy agreement. Failure to pay stamp duty on time may result in penalties and fines.
To calculate the stamp duty payable for a tenancy agreement in Malaysia, you can use the Stamp Duty Calculator provided by the Malaysian Inland Revenue Board. This online calculator allows you to input the relevant details of the tenancy agreement, including the duration of the tenancy and the annual rent payable, and provides you with the amount of stamp duty payable.
In conclusion, paying stamp duty for a tenancy agreement in Malaysia is an important legal requirement that both landlords and tenants need to adhere to. By understanding how stamp duty is calculated and using the Stamp Duty Calculator, you can ensure that you comply with the law and avoid any penalties or fines.