Stamp duty rental agreement Malaysia obligations apply to every tenancy, whether it’s a residential unit or an industrial factory. Before a tenancy agreement can be relied on as a proper legal document, it must be stamped by Lembaga Hasil Dalam Negeri Malaysia (LHDN/HASiL), and the amount payable depends on the annual rent and the length of the tenancy. As a result, both landlords and tenants should understand this cost upfront, rather than being surprised by it at signing.
Importantly, the rules changed in 2025: the previous exemption on the first RM2,400 of annual rent was removed, so the full annual rent is now taxable regardless of tenancy duration. In addition, the rate charged per RM250 of that amount still varies by how long the tenancy runs — from RM1 per RM250 for a term of one year or less, up to RM7 per RM250 for a term beyond five years or an indefinite period.
This guide walks through how the taxable amount is worked out, the current rate table, and a full worked example using a RM3,000/month rental. If you’re renting or leasing an industrial property in Penang, contact YC Tang at 019-4499725 — we can help you budget for stamp duty and other tenancy costs before you sign.
Stamp Duty Rental Agreement Malaysia — Legal Requirements
Stamp duty on a tenancy agreement is a legal requirement under the Stamp Act 1949, administered by LHDN (HASiL). It applies to residential, commercial, and industrial tenancies alike. An unstamped or under-stamped agreement is not automatically void, but it cannot be admitted as evidence in court until the correct duty — plus any late-stamping penalty — has been paid. Therefore, most landlords, tenants, and agents treat stamping as a standard part of finalising any tenancy.
⚖️ Governed by the Stamp Act 1949
The Third Schedule of the Stamp Act 1949 sets out the rates for tenancy and lease documents in Malaysia.
🏛️ Administered by LHDN (HASiL)
Lembaga Hasil Dalam Negeri Malaysia collects stamp duty and operates the STAMPS e-stamping system.
📜 Needed for Court Admissibility
An unstamped agreement cannot be used as evidence in civil proceedings until it is properly stamped.
💼 Applies to Industrial Tenancies Too
Factory and warehouse tenancies follow the same rate structure — often at a higher taxable amount given larger rentals.
How the Taxable Rental Amount Is Calculated
Calculating stamp duty for a tenancy agreement follows a straightforward four-step process. However, one detail catches many people out: since 1 January 2025, the previous exemption on the first RM2,400 of annual rent no longer applies — the full annual rent is now the taxable amount, regardless of tenancy duration.
| 1️⃣ | Calculate annual rent — monthly rent × 12 months. |
| 2️⃣ | Take the full annual rent as the taxable amount — no RM2,400 exemption since January 2025. |
| 3️⃣ | Divide by RM250 and round up to the nearest whole number if it isn’t an exact multiple. |
| 4️⃣ | Multiply by the rate for the applicable tenancy duration (see the table below). |
📌 Note: The RM2,400 annual rent exemption was removed effective 1 January 2025. Older guides and calculators that still subtract RM2,400 before calculating are out of date.
2026 Stamp Duty Rates by Tenancy Duration
The rate charged per RM250 (or part thereof) of the taxable rental amount rises with the length of the tenancy. For example, a short-term one-year tenancy attracts the lowest rate, while a lease of more than five years attracts the highest.
📌 Note for tenants: under Malaysian tenancy law, a standard tenancy agreement runs a maximum of 3 years — anything longer is classified as a lease requiring a lease deed registered with the Land Office, which falls into the higher rate tiers above.
Worked Calculation Example
Consider a tenancy with a monthly rent of RM3,000. Annual rent works out to RM3,000 × 12 = RM36,000. Since RM36,000 is already an exact multiple of RM250 (36,000 ÷ 250 = 144, no rounding needed), the taxable units are 144. From there, the applicable rate simply multiplies through:
📄 Tenancy of 1 Year or Less
144 × RM1 = RM144 stamp duty payable.
📄 Tenancy of 2 to 3 Years
144 × RM3 = RM432 stamp duty payable.
If the annual rent isn’t an exact multiple of RM250, round the division up before multiplying. For example, an annual rent of RM14,400 divided by RM250 gives 57.6, which rounds up to 58 taxable units — so a 2-to-3-year tenancy on that rent would be 58 × RM3 = RM174, not RM172.80.
How to Stamp Your Tenancy Agreement
Most tenancy agreements in Malaysia are now stamped electronically via LHDN’s STAMPS e-stamping system, though a lawyer or stamp duty agent can also handle the submission on your behalf. Meanwhile, it’s worth planning for the number of copies you’ll need before you go through the process.
💻 e-Stamping via STAMPS
LHDN’s online STAMPS portal lets you submit and pay for stamp duty on a tenancy agreement without visiting a branch.
🧾 RM10 per Extra Copy
Beyond the first stamped original, each additional stamped copy is charged a flat RM10 fee.
👥 One Copy per Party
It’s standard practice for the landlord, tenant, and agent (if any) to each hold a stamped original copy.
⏱️ Stamp Promptly
Consequently, stamping the agreement promptly after signing avoids late-stamping penalties and keeps the document usable as evidence if a dispute arises.
❓ Frequently Asked Questions
What is stamp duty on a tenancy agreement, and why is it required?
Stamp duty is a tax under the Stamp Act 1949, collected by LHDN (HASiL), that must be paid on a tenancy agreement before it can be used as evidence in court. It applies to residential, commercial, and industrial tenancies alike.
How is the taxable rental amount calculated?
Take the monthly rent, multiply by 12 to get annual rent, then divide by RM250 (rounding up if it isn’t an exact multiple). Multiply the result by the rate for the tenancy duration to get the stamp duty payable.
Is there still an exemption on the first RM2,400 of annual rent?
No. That exemption was removed effective 1 January 2025. The full annual rent is now the taxable amount, regardless of how long the tenancy runs.
What are the 2026 stamp duty rates by tenancy duration?
RM1 per RM250 for a tenancy of one year or less, RM3 per RM250 for more than 1 up to 3 years, RM5 per RM250 for more than 3 up to 5 years, and RM7 per RM250 for beyond 5 years or an indefinite term.
What’s the stamp duty for a RM3,000/month rental?
Annual rent is RM36,000, giving 144 taxable units of RM250. That’s RM144 for a tenancy of 1 year or less, or RM432 for a tenancy of 2 to 3 years.
What happens if the taxable amount isn’t an exact multiple of RM250?
Round the division up to the next whole number before multiplying by the rate — you always pay for the full RM250 band even if only part of it is used.
Where do I stamp a tenancy agreement in Malaysia?
Most agreements are stamped online through LHDN’s STAMPS e-stamping portal, or through a lawyer or stamp duty agent who submits it on your behalf.
I’m renting an industrial property in Penang — does this apply to me?
Yes. Factory and warehouse tenancies follow the same rate structure, just with a higher taxable amount given larger rentals. Contact YC Tang at 019-4499725 if you’d like help budgeting for stamp duty alongside rental and PDC consent costs on an industrial tenancy.
📎 Official Reference: For the current stamp duty rates and e-stamping procedure, visit Lembaga Hasil Dalam Negeri Malaysia (LHDN/HASiL) — STAMPS.
Looking to Rent an Industrial Property in Penang?
Renting or Leasing an Industrial Property in Penang?
YC Tang can help you budget for stamp duty, PDC consent fees, and other tenancy costs before you sign — and match you with factories and warehouses across Penang Mainland and Kedah.
Landlords & Vendors: If you have a factory or warehouse for sale or for rent in Penang Mainland or Kedah, we welcome your listing. We provide structured marketing exposure, qualified tenant enquiries, and practical advisory to help you lease or transact your industrial property efficiently.
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