RENTAL AGREEMENT STAMP DUTY MALAYSIA

Rental agreement is a printed document with all the terms and conditions agreed by tenant and landlord printed on it. Rental agreement is a very important part of leasing property as it can protect the right and property of the owner.

Why do we require rental agreement stamp duty in Malaysia?

According to the First Schedule of Stamp Duty Act 1949, instruments to be tax levied, as the stamp duty is the key to make your agreement legal and valid.

When to do stamp duty?

You will have to get your agreements stamped within 30 days after you and landlord have put on the signatures (if the agreement is executed within Malaysia). If the instrument is executed outside Malaysia, it must be stamped within 30 days from the date it received by favorable party.

Where to do stamp duty?

Stamp duty can be done at any of the Lembaga Hasil Dalam Negeri Malaysia (LHDNM) outlet.

How much they charge

Stamp duty payment can be made through the following method:

  1. Duty does not exceed RM 100 – cash
  2. Duty does not exceed RM 500 – Revenue stamp
  3. Money order, Solicitor’s Cheque or bank draft which is being made payable to the Collector of Stamp Duty (Pengarah Lembaga Hasil Dalam Negeri Malaysia) and send together with the agreement to the LHDNM by hand or through registered post. Money order, solicitor’s cheque or bank draft can be bought in any of the bank.

Penalty

If the agreement is not being stamped within the 30 days period, penalty of

  • RM 25.00 or 5% of the deficient duty, whichever is the greater, if stamped within 3 months after the time for stamping
  • RM 50.00 or 10% of the deficient duty, whichever is the greater, if stamped after 3 months but not later than 6 months after the time for stamping;
  • RM 100.00 or 20% of the deficient duty, whichever is the greater if stamped after 6 months from the time for stamping may be imposed.

How to calculate Stamp Duty

Rental for every RM 250 in excess of RM 2400 rental

Less than 1 year: RM 1

Between 1-3 years: RM 2

More than 3 years: RM 3

Annual rental below RM 2400 – no stamp duty

For example, monthly rent of RM 1200 with 1 year agreement.

Stamp duty: [RM 14400 (annual rent) – RM 2400]/RM 250 x RM 1 (1 year) = RM 48

Simplify the steps by using SPEEDMANAGE

By using SPEEDMANAGE, there are several benefits as compared to the conventional way of agreement stamping:

SPEEDMANAGE Conventional agreement stamping
– One stop to sign digital tenancy agreement and pay stamping fee.
– Sign contract within 30 minutes
– Everything done in mobile app
– Save time and energy
– Agreement stored electronically and view it anytime, anywhere
– Have to visit several places to complete the agreement signing process  
– Takes time to complete the task

SPEEDMANAGE is legal and the signed digital tenancy agreement and the duty stamped copy will be admissible in court under Section 7 of Electronic Commerce Act 2006 and Section 62(2) of Digital Signature Act 1997.

More information about SPEEDMANAGE

Tenants will be charged RM399 + 6% SST as Speedsign fee (inclusive of stamp duty).

You should consider your options whether you should use SPEEDMANAGE or conventional way of agreement stamping. SPEEDMANAGE is totally free for landlord to create the agreement. Tenant will pay RM399 + 6% SST as Speedsign fee. The fee is inclusive of stamping fee.

For more information about SPEEDMANAGE , you can read it here. Download SPEEDMANAGE and create your agreement immediately at speedmanage.com 

Any questions – feel free to email us at [email protected]

*** Currently it is only available for residential units ***

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