Where to Stamp Tenancy Agreement

Introduction of Stamp Duty in Malaysia

According to the First Schedule of Stamp Duty Act 1949, there are varieties of written instruments to be tax levied by Stamp duty. In another words, stamp duty is required in any of the legal, commercial and financial instruments.

There are two types of Stamp Duty, which are valorem duty and fixed duty. For valorem duty, the amount payable will vary according to the type and value of the instruments. From this statement, we understood that tenancy agreement is valorem duty as you will have to pay the Stamp Duty according to the monthly rental fee.

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. 

Stamp Duty Payment

Stamp duty payment can be made at any of the branch of Lembaga Hasil Dalam Negeri Malaysia (LHDNM).

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;
• RM100.00 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

How to calculate legal fee

Legal Fee for Tenancy Agreement period of 3 years and below:

First RM 10,000 rental – 25% of the monthly rent

Next RM 90000 rental– 20% of the monthly rent

More than RM 100,000 – negotiable

Legal Fee for Tenancy Agreement period of above  3 years:

First RM 10,000 rental – 50% of the monthly rent

Next RM 90000 rental– 20% of the monthly rent

More than RM 100,000 – negotiable

Hence, the legal fee of RM 1000 monthly rental’s agreement = RM 1200 x 25% = RM 300

Sum of Stamp Duty fee and Legal fee

= RM48 + RM 300

= RM 348

Speedsign: Signing your agreement without lawyer

Speedsign is a legal online agreement signing mobile apps under under Section 7 of Electronic Commerce Act 2006 and Section 62(2) of Digital Signature Act 1997.

There are several benefits of using Speedsign and Lawyer tenancy agreement.

Benefits
Speedsign	Lawyer tenancy agreement
Everything done within mobile apps Hassle free, no leg work Standardize one time payment (inclusive of Stamping fee) Signing agreement becomes so fast and easy Standardize terms and conditions	Able to question about the terms and condition and get explanation for that Better and more secured way of agreement signing Terms and conditions are negotiable Terms and conditions can be prepared and stated according to the landlord’s preferences

It is simple and fast with Speedsign

Tenants will be charged RM449+SST for one year lease agreement (inclusive of stamp duty).

If you are a landlord with multiple properties to be handled, plus when you are not staying within Malaysia, SPEEDHOME and Speedsign should be under your consideration to help you getting everything done automatically. SPEEDHOME can advertise your properties effectively while Speedsign allows you to sign the agreement anytime, anywhere.

 

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