Stamp duty calculation for tenancy agreement Malaysia is an important process that needs to be understood by both landlords and tenants. The Malaysian government through its legal instruments requires all tenancy agreements to be stamped before they can be deemed legal. This is in line with the Stamp Act 1949 which requires all legal documents to be stamped to be enforceable in court.

There are a few factors that determine the amount of stamp duty payable for a tenancy agreement in Malaysia. The first factor is the duration of the tenancy agreement. For tenancy agreements that are less than one year, the total stamp duty payable is calculated by multiplying the monthly rental amount by the number of months in the tenancy agreement, and then multiplying the result by 0.5%.

For example, if the monthly rental for a tenancy agreement is RM1,000 and the tenancy agreement is for 6 months, the total stamp duty payable would be RM30. This is calculated as follows:

RM1,000 (monthly rental amount) x 6 (number of months in tenancy agreement) = RM6,000

RM6,000 x 0.5% = RM30

For tenancy agreements that are more than one year, the total stamp duty payable is calculated differently. The stamp duty payable is calculated by multiplying the annual rental amount by the number of years in the tenancy agreement, and then multiplying the result by 0.5%.

For example, if the annual rental for a tenancy agreement is RM12,000 and the tenancy agreement is for 2 years, the total stamp duty payable would be RM120. This is calculated as follows:

RM12,000 (annual rental amount) x 2 (number of years in tenancy agreement) = RM24,000

RM24,000 x 0.5% = RM120

It is important to note that stamp duty must be paid within 30 days of signing the tenancy agreement. Failure to pay the stamp duty within this period will result in a penalty of 10% of the total stamp duty payable, with a minimum fine of RM25 and a maximum fine of RM500.

In conclusion, stamp duty calculation for tenancy agreement Malaysia is a crucial aspect of the process of renting a property. It is important to understand the factors that determine the amount of stamp duty payable to avoid any legal complications down the line. Landlords and tenants are advised to consult with legal professionals to ensure compliance with the Stamp Act 1949 and other relevant laws.