When renting a property, it is crucial to have a tenancy agreement in place to outline the terms and conditions of the tenancy. However, many tenants and landlords may not be aware of the stamp duty procedure that comes with signing a tenancy agreement.
Stamp duty is a tax imposed on legal documents, including tenancy agreements. The amount of stamp duty payable depends on the rental amount and the duration of the tenancy. In Malaysia, the stamp duty rates for tenancy agreements are as follows:
– RM1 for every RM250 or part thereof of the total rental for the whole period of the tenancy agreement, if the total rental does not exceed RM2,500.
– RM2 for every RM250 or part thereof of the total rental for the whole period of the tenancy agreement, if the total rental exceeds RM2,500 but does not exceed RM5,000.
– RM2 for every RM500 or part thereof of the total rental for the whole period of the tenancy agreement, if the total rental exceeds RM5,000.
The stamp duty must be paid within 30 days from the date of signing the tenancy agreement. Failure to pay the stamp duty within the stipulated time frame may result in penalty charges.
To pay the stamp duty, tenants and landlords need to head to the nearest Malaysian Inland Revenue Board (LHDN) office or online portal. The procedure for paying stamp duty online is as follows:
1. Register for an account on the LHDN portal and complete the e-DP1 form.
2. Upload a scanned copy of the tenancy agreement.
3. Make the payment using any of the available online payment methods.
4. Download and print the stamped tenancy agreement.
Once the tenancy agreement is stamped, it becomes a legally binding document. The stamped tenancy agreement serves as proof of the payment of the stamp duty and can be used as evidence in court in the event of any disputes between the tenant and landlord.
In conclusion, paying stamp duty is an essential part of signing a tenancy agreement in Malaysia. Tenants and landlords must ensure that they pay the correct amount of stamp duty within the stipulated time frame to avoid any penalties. By following the above procedure, they can ensure that their tenancy agreement is legally binding and enforceable.
