If you`re a landlord or tenant in Malaysia, you may be wondering how stamp duty is calculated on a tenancy agreement. Stamp duty is a tax levied by the government on certain legal documents, including tenancy agreements. In Malaysia, the stamp duty on tenancy agreements is calculated based on the rental amount and the duration of the tenancy.

The stamp duty rate for tenancy agreements in Malaysia is set at a flat rate of RM10 for every RM1,000 of the annual rental value. For example, if the annual rental value is RM12,000, the stamp duty would be RM120 (RM10 x 12). This stamp duty is payable by the tenant and must be paid within 30 days of the signing of the tenancy agreement.

It`s important to note that the stamp duty is calculated on the total rental amount for the entire tenancy period. So, if the tenancy agreement is for a period of two years, the stamp duty will be calculated on the total rental amount for those two years. In cases where the rental amount changes during the tenancy, the stamp duty is calculated based on the total rental amount for the entire tenancy period.

To calculate the stamp duty on a tenancy agreement, you can use the following formula:

Stamp duty = (Annual rental value ÷ 1,000) x RM10 x Number of years of tenancy

For example, if the annual rental value is RM24,000 and the tenancy agreement is for a period of three years, the calculation would be as follows:

Stamp duty = (RM24,000 ÷ 1,000) x RM10 x 3

Stamp duty = RM720

It`s important to ensure that the stamp duty is paid within 30 days of the signing of the tenancy agreement to avoid any penalties or legal issues. The stamp duty can be paid at any authorized stamp agent, which includes banks and other financial institutions.

In conclusion, stamp duty on tenancy agreements in Malaysia is calculated based on the rental amount and the duration of the tenancy. The stamp duty rate is set at a flat rate of RM10 for every RM1,000 of the annual rental value. It`s important for tenants and landlords to ensure that the stamp duty is paid within 30 days of the signing of the tenancy agreement to avoid any legal issues.