Stamping of Tenancy Agreement in Malaysia: Everything You Need to Know
If you are a tenant or landlord in Malaysia, one of the crucial things you must do before you start renting a property is to stamp the tenancy agreement. Not only is it a legal requirement, but it can also protect you in the event of any dispute that may arise during the tenancy period.
What is Stamp Duty?
Stamp duty is a tax that is imposed on various legal documents, including tenancy agreements, by the Malaysian government. The amount payable depends on the terms and conditions of the tenancy agreement and the duration of the lease. The stamp duty is calculated as a percentage of the total rental fee for the entire duration of the lease.
Why is Stamping of Tenancy Agreement Important?
Stamping of a tenancy agreement is important because it makes the agreement legally binding and enforceable in court. If there are any disputes or conflicts between the tenant and the landlord during the tenancy period, the stamped agreement can be used as evidence in court to resolve the matter.
Additionally, the stamping of a tenancy agreement ensures that the agreement is recognized by the Malaysian government. This can be particularly important if you are a foreigner renting property in Malaysia and need to provide proof of your tenancy agreement for visa or work permit purposes.
When Should You Stamp Your Tenancy Agreement?
You should stamp your tenancy agreement within 30 days of signing the agreement. Failure to stamp the agreement within this timeframe can result in a penalty fee being imposed by the Malaysian government.
How to Stamp Your Tenancy Agreement in Malaysia?
You can stamp your tenancy agreement either online or offline. Here is a step-by-step guide on how to stamp your agreement:
Step 1: Obtain a copy of your tenancy agreement from your landlord or property agent.
Step 2: Calculate the stamp duty payable using the Stamp Duty Calculator provided by the Malaysian government.
Step 3: Purchase the appropriate Stamp Duty Certificate from any authorized stamp office or online via the e-Stamping portal.
Step 4: Complete the necessary details on the Stamp Duty Certificate and affix the stamp onto the tenancy agreement.
Step 5: Submit the stamped tenancy agreement to the nearest Inland Revenue Board (LHDN) office for registration.
Step 6: Pay the stamp duty fee and registration fee at the LHDN office.
In conclusion, stamping of a tenancy agreement in Malaysia is a legal requirement that protects the rights of both tenants and landlords. It not only ensures that the agreement is legally binding but also recognized by the Malaysian government. By following the steps outlined above, you can ensure that your tenancy agreement is properly stamped and legally enforceable.