Stamp duty is a tax payable to the Malaysian Government when a tenancy agreement is signed between a landlord and a tenant. The amount of stamp duty payable varies based on the duration of the tenancy and the rental value agreed upon. In this article, we will guide you on how to calculate stamp duty for tenancy agreement in Malaysia.
Step 1: Determine the rental amount
The stamp duty payable to the Malaysian Government is based on the rental amount agreed between the landlord and tenant. The rental amount should be clearly stated in the tenancy agreement to avoid any confusion or disputes in the future.
Step 2: Determine the tenancy period
The tenancy period is the duration of time that the tenant will occupy the rental property. It is important to determine the tenancy period as it will affect the calculation of the stamp duty payable.
For example, if the tenant agrees to rent the property for a period of 2 years, the stamp duty calculation will be based on the total rental amount for the 2-year period.
Step 3: Determine the stamp duty rate
The stamp duty rate for tenancy agreements in Malaysia is as follows:
– For a tenancy period of less than 1 year: Stamp duty is calculated at the rate of RM1 for every RM250 or part thereof of the total rental value for the entire tenancy period.
– For a tenancy period of 1 year or more: Stamp duty is calculated at the rate of RM2 for every RM250 or part thereof of the total rental value for the entire tenancy period.
For example, if the total rental value for a 2-year tenancy period is RM30,000, the stamp duty payable will be calculated as follows:
– For the first RM250, the stamp duty rate is RM1 for every RM250. Therefore, the stamp duty payable is RM1.
– For the remaining RM29,750 (RM30,000 – RM250), the stamp duty rate is RM2 for every RM250. Therefore, the stamp duty payable is RM238 (RM29,750 ÷ RM250 x RM2).
– The total stamp duty payable is RM239 (RM1 + RM238).
Step 4: Pay the stamp duty
Once the stamp duty calculation is complete, the tenant or landlord can proceed to pay the stamp duty to the Malaysian Government. The stamp duty can be paid at any Malaysian Stamp Office or through online payment.
In conclusion, calculating stamp duty for tenancy agreement in Malaysia is a straightforward process. By following the steps outlined in this article, landlords and tenants can ensure that the stamp duty payable is accurately calculated, avoiding any potential disputes or penalties in the future.