Rental Tenancy Agreement Stamp Duty: What You Need to Know
As a tenant or landlord, one of the important documents you’ll need to sign is the rental tenancy agreement. This document outlines the terms and conditions of your rental agreement, including the duration of the tenancy, the rental amount, and other important details. But did you know that rental tenancy agreements are also subject to stamp duty?
Stamp Duty on Rental Tenancy Agreements
In Malaysia, rental tenancy agreements are subject to stamp duty under the Stamp Duty Act 1949. Specifically, the stamp duty on rental tenancy agreements is charged under Section 3A of the act, which states that the duty payable on the agreement is based on the yearly rent payable.
The amount of stamp duty payable varies depending on the rental amount and the duration of the tenancy agreement. For example, if the rental amount is RM2,400 per year, and the tenancy agreement is for two years, the stamp duty payable would be RM100. However, if the rental amount is higher, the stamp duty payable would also increase.
Who Pays for Stamp Duty?
According to the law, the party responsible for paying stamp duty on rental tenancy agreements is the tenant. However, this can be negotiated between the tenant and the landlord. It’s important to note that if the tenant fails to pay the stamp duty, the landlord can be held liable.
When to Pay for Stamp Duty
Stamp duty on rental tenancy agreements must be paid within 30 days from the date of signing the agreement. Failure to pay within this period will result in a penalty of 10% of the duty payable, with a maximum penalty of RM25.
How to Pay for Stamp Duty
To pay for stamp duty on rental tenancy agreements, you can visit any local stamp office or registered financial institution that provides stamp duty services. You’ll need to bring along a copy of the tenancy agreement and the necessary payment.
In conclusion, rental tenancy agreements are subject to stamp duty in Malaysia. The amount of stamp duty payable is based on the yearly rental amount and the duration of the tenancy agreement. It’s important for tenants to pay the stamp duty within 30 days from the date of signing the agreement to avoid penalties. If you’re unsure about the stamp duty payable for your rental tenancy agreement, it’s best to consult with a legal professional or visit a local stamp office for advice.