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:

Taxable Amount: For example, if your monthly rent is RM3,000, your annual rent would be RM36,000 (RM3,000 x 12 months). Your taxable rental amount would be RM36,000

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.
• 2 to 3 years: RM3 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.

Calculation Example:

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

• Taxable amount: RM36,000

• Tenancy duration:

  • Less than 1 year: [(RM3,000 x 12) / RM250 x RM1 = RM144
  • 2 to 3 years: (RM3,000 x 12) / RM250 x RM3 = RM432

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.