Calculating Stamp Duty for Your Rental Agreement in Malaysia

Renting out a property in Malaysia involves some administrative tasks, one of which is paying stamp duty on the tenancy agreement. This fee ensures the agreement is valid and enforceable. Here’s a breakdown of how to calculate the stamp duty:

Exemption: The good news is that the first RM2,400 of your annual rental income is exempt from stamp duty.

Taxable Amount: To find the taxable amount, simply subtract the RM2,400 exemption from your total annual rent. For example, if your monthly rent is RM3,000, your annual rent would be RM36,000 (RM3,000 x 12 months). Subtracting the exemption, your taxable rental amount would be RM33,600 (RM36,000 – RM2,400).

Rate by Duration: The stamp duty rate depends on the length of your tenancy agreement:

• Less than 1 year: RM1 for every RM250 of the taxable rental amount.
• 1 to 3 years: RM2 for every RM250 of the taxable rental amount.

Rounding Up: It’s important to note that if the taxable amount after exemption isn’t a perfect multiple of RM250, you need to round it up to the nearest RM250.

Calculation Example:

Let’s revisit the example with a monthly rent of RM3,000:

• Taxable amount: RM33,600 (as calculated earlier)

• Tenancy duration:

  • Less than 1 year: [(RM3,000 x 12) – RM2,400] / RM250 x RM1 = RM135
  • 1 to 3 years: [(RM3,000 x 12) – RM2,400] / RM250 x RM2 = RM270

Number of Copies: It’s recommended to get original copies of the stamped tenancy agreement for each party involved (landlord, tenant, and agent, if applicable).

By following these steps, you can easily calculate the stamp duty for your rental agreement in Malaysia. Remember, having a stamped agreement ensures its validity and protects your rights throughout the tenancy period.”Ca