How much does it cost for stamp duty for Tenancy Agreement in Malaysia?

What is a tenancy agreement?

 

When you successfully rented out your rental property, a contract has to be signed between you as landlord and your tenant. It is a legalized document that both parties agreed on the specifying the terms and conditions of their rental agreement. Tenancy agreements are usually signed before the tenant is moved in.

 

Why do we need to stamp the Tenancy Agreement?

Under Section 52 of the Stamp Act 1949 states that instruments chargeable with duty not duly stamped shall be inadmissible evidence. At such, as a landlord we do need to make sure that all tenancy agreements are duly stamped to ensure that it is admissible in court in the event that it requires to be enforced.

 

Normally two copy of Tenancy Agreement will be signed. One copy will be for landlord and another copy will be given to the Tenant. Both copy of the Tenancy Agreement has to be stamp in order to become a legalized document.

 

Maybe some landlord wish to save the stamp duty money. This would not be a good idea as the stamp duty will not cost you a lot. It will save you a lot of trouble in the future. Let us not be penny wise, foolish pound. For me this is a must to protect myself and my tenant, so that the tenant prudent and discipline to pay rent and taking care of the property.

 

There is another added advantage by having a tenancy agreement. It will be a supporting document to prove that you are having additional rental income. This additional income can help you to acquired loan approval for your next property purchased.

 

How much is the Tenancy Agreement Stamp Duty?

As for the tenancy agreement stamp duty, the amount you have to pay is depending on yearly rental and duration of the agreement. In summary, the stamp duty is tabulated in the table below. I got the following table from the LHDN Office.

Tenancy Agreement Stamp Duty TableAbove table listed are for the main copy of tenancy agreement, if  you have 2nd or 3rd duplicate copy, the stamp duty is $10.00 for each copy.

Who should pay the Tenancy Agreement?

The next question is “who should pay the Tenancy Agreement?’ There is no right or wrong answer here. Most of the time is Tenant and some of the time can be equally shared by Tenant and Landlord. It all about how it was agreed upon.

 

150 comments

  1. Hi.. My agent troubled me alot and finally gave me agreement with one stamp which i cant see properly also. No registration number, nothing. So, how to find that he registered properly or not?

    Please help.

    Thanks,
    Raju

    • property
      Author

      Hi Raju:

      Once the Tenancy Agreement is stamped, you should able to see the date of the stamp and the price. Normally is printed in clear GREEN font. LHDN is using printing,so it should be clear.

  2. nina

    Hi there,

    Is it true that we cannot proceed for stamping of the tenancy agreement prior to the commencement of the tenancy period?

    i heard it from someone but not sure on the reliability of the information.

    and if cannot refer to some supports also helps. because i didnt see it mentioned in the lhdn website. but i may have missed it though.

    pls help.

    tq.

    • property
      Author

      Dear Nina:
      Your information is true. My personal experience also same. The LHDN officer cannot process it due to the date is not start yet.

  3. Nawal

    Hi there.
    I rented out a condo. However, Im seeking for a few girls to join me in the unit.
    How do i prepare a rental agreement between myself and the other tenant?
    Looking forward for your reply.

    Thank you.

  4. Tina

    Hello,

    We recently signed a new addendum that adjusted the rental rate that was stated in the original tenancy agreement that was already stamped.

    In this case, How would the stamping fees for the Addendum be calculated?

    Do we need to pay the few hundred Ringgit based on the rental + agreement period again?

    Thank you!

    • Chat Property Malaysia
      Author

      Dear Tina, I do not have any experience on the addendum. You may check with the LHDN and update us here. It will be great as all of us are learning from each other.

      • Tina

        Found out that for the addendum, only the nominal RM10 stamping fee is needed. UNLESS, the addendum is to extend the tenancy agreement period, or the rental fee is higher than the rental fee originally stated in the agreement, in that case, you either need to pay according to the formula you shown, or pay the differences after an increase in rental.

  5. Ling

    I am due for my rental renewal and the landlord sent me an electronic tenancy agreement for review, with a note to pay for RM150 stamp duty.

    The rental is RM1700 per month for a year renewal. Based on the table above, stamp duty should be RM72 plus RM10 for an additional copy of duplicate agreement. Before I raise the question to landlord, would like to hear your advice if there are other standard charges behind this that I might not be aware of.

    Many thanks.

  6. mohd syamir

    Hello, just wanna ask, If i made TA by myself for the tenant that already occupied my shop-lot since may 2015 but i just find out that TA need to be stamp to make it legal. Thus can we use the current TA to be stamp by LHDN from the date of tenancy? And do we need lawyer to sign our TA or not?
    thanks

  7. mohd syamir

    Hello, just wanna ask, If i made TA by myself for the tenant that already occupied my shop-lot since may 2015 but i just find out that TA need to be stamp to make it legal. Thus can we use the current TA to be stamp by LHDN from the date of tenancy? And do we need lawyer to sign our TA or not?
    thanks

    • Chat Property Malaysia
      Author

      You may need to check with LHDN if the date of the commencement is still valid since already pass for 6 months.
      Do not need lawyer to sign the TA.

  8. C Sim

    Hi, I am going to rent a shop lot but the agent said I will have to pay him half a month of agent fee? I thought the agent fee is paid by the owner not the tenant?

    Thanks !

  9. Davi

    Hello and good evening to all here from JB im a european. I rented today a condo studio in taman austin agent said must pay 200fee agreement tenancy. Aftet all i asked for thetenanvy stamped latrr shesaid no stamps or price fee on thestamp/reciepe.what should i do. I dont like people cheat me. I can takr any further reclam. No fee tenancy mentioned on the agreement i signed thank you!!

    • Chat Property Malaysia
      Author

      Dear Davi:

      The stamping fees is according to your montly rental.
      For instance if your rental is RM1500, by referring to the table, it will cost $63.00 for 1 year tenancy.
      And if need another copy of Tenancy agreement, it will cost RM10 for subsequent “duplicate copy”
      There is no receipt issue by the LHDN office. But the price is clearly stamp onto the Tenancy Agreement.

      I strongly believe that your agent is asking RM200 from you could be his/her service fees.
      It is fair to pay them as they are providing the tenancy agreement and running around to get the tenancy agreement stamped.

      • James

        I want to ask what is the reasonable service fees for the agent? If the agent asking for a high service fees and we already pay the booking fees mean 1 month of rental RM950, what can we do?

  10. Chong

    Hello,
    I am the landlord and plan to stamp my copy of the tenancy agreement. What documents do i need to bring to LHDN?

    Must i also bring my tenant’s copy of the agreement? Or is my copy alone sufficient? Appreciate your kind advise.

  11. itai

    Hi,
    I remembered many years ago when paying for this stamp duty, the LHDN officer did not request me to fill up a form but this year when I went there, I was requested to fill up a LHDN form, will that mean LHDN will use this form to track my income tax report ?

    Thanks.

      • itai

        Well. How about if I go to post office buying stamp according to the rate specified, stick the stamp and stamp date on top of the stamp ? Is my tenancy agreement document considered legalized and admissible ?

        Thanks again.

  12. PC

    Hi, can I bring one original copy of TA and a scan/photostat copy TA to LHDN for stamping? Or both need to be in original signed copies of TA? Kindly pls advise. Thank you in advance!

  13. Meb

    Hello – I only have electronic copies of the signed tenancy aggreement from landlord – can I print the 2 scanned copies and get them stamped? – will be very difficult to get an original copy with landlord’s signature

    many thanks

  14. Julie

    If i extend the tenancy to one year and the rental is same, can i just do the addendum to pay stamp duty for addendum? Hw much is that

  15. Josephine

    If the tenancy is for a period of 2 years – 1st year RM5000 and 2nd year RM5100. How to calculate the stamp duty payable

  16. uma

    I need your help. I am the owner of a unit which is currently tenanted. This is my second year with this tenant. The first year the tenancy agreement stamp duty were done by the agent therefore we don’t have any problem. Since this is the second year, I have re-typed the agreement as same as the first one. I am not sure where to get the stamp duty from? help!

  17. Babu

    Hi,

    I was an ex-tenant of an unit. I had tenancy agreement with my landloard.
    On first page, it has a green color stamp with the info ( RM10, Date, Pejabat Setem Cheras and 11 digt number on it)..

    Tenancy agreement ended in Dec-15. I did not get my deposit amount back.
    At the time of contract I used to contaact the agent…now agent number also not reachabl…

    Pls advise how I need to proceed…

    Many Thank in advance.. Do I need to approach LHDNM or Police report?

    • Chat Property Malaysia
      Author

      First you need to talk to the Landlord and discussed with it in detail.
      Only then to take the next course of actions.

  18. Babu

    Thank you for the quick response.

    I do not have landlord contact number.When I asked agent before, agent used to tell to contact her if I have any issue.
    Agent never let me know landlord number.

    Pls advise.

  19. Mindy

    Hi, i m renting my house effective 1/3/2016, meaning i can only stamp after that date? And who should keep
    Original copy ,landlord or tenant?

  20. Math

    Hi there, I have a tenant who is continuing to rent my house after many years. She was previously working for a company who paid for the rental but unfortunately her employer had moved elsewhere and she had to stop working. The agreement was between me and the company, witnessed by their own Director/Secretary.

    My question is, can I do my own tenancy agreement (similar to the old agreement), then signed by the tenant and get it stamped? Can I get it stamped after the commencement of the tenancy period? Officially she started renting this month of March ’16.

    Please advise and looking forward for an early reply. Thank you for your help.

    • Chat Property Malaysia
      Author

      Hi Math,surely you can do your own tenancy agreement and then signed by the tenant. After that, you just need to go to LHDN and get it stamped.

  21. Komathi

    Hi.. My tenancy agreement is for One year, but i have move out from the house within a year. but i have inform the owner 2 months before my moving date. whenever i tell the owner about my moving out date, he never even mention about completion of agreement. now he msging me and saying tat he will take my security deposit to cover the rental from the day i move out and also charge me for cleaning fee. In the agreement i never there is any rules that i have to complete one year or i have to pay for cleaning. can anyone advise me on this? Thanks.

    • Chat Property Malaysia
      Author

      Hi, you may check in details in the Tenancy Agreement if there is any clause mentioning that. Normally the cleaning fees only being charged if you left in a mess.Otherwsie,should not be charged.

      As for deposit, as long as you comply with the Tenancy Agreement, the deposit should be refunded.

  22. Komathi

    Hi ,
    I need your help. Actually i rent a house in johor bahru (Monthly RM1400). I have paid 2 months security deposit & RM700 for utilities. My agreement will expire end of March’16(One Year Agreement) . But i have notify to agent by watsapp that i will be moving out from the house before completion one year which is in mid of February. According to the agreement i need to notify one month before, but i have inform the agent since Dec’15 that ill be vacant somewhere in Feb. Even in the agreement there is no rules stated that I still have to pay the rentals for the remaining month if i terminate earlier. whenever i talk about my moving out date the agent also never tell me about this. Until end of the day, one day before i return the key the agent message me and said i have to complete one year which means i have to pay rental for March as well. That time i have already move out to new house. First thing i am wondering why agent never tell me anything until the day i move out or highlight to me to complete one year. When i question him, he said there is a miscommunication.
    At last i return the key on 29th Feb to the agent and agent say he will talk to the landlord to not charge me for the March rental. I say i’m ok if he want charge me half month of rental. Yesterday i received msge from agent said that landlord will take the security deposit for cover 1 month rental in March and balance monthly security deposit will be deducted for RM550 for contractor fee (i am agree to accept this charges as we have drill but it will not cost RM550) & RM250 for cleaning the house. I don’t understand why i have to pay for cleaning services as well.

    I didnt reply anything for agennt message and ask him to provide owner number. I do not have landlord contact number.When I asked agent before, agent used to tell to contact him if I have any issue. Even now i am asking for owner number but he not providing me the number. I can provide you the scan copy of the agreement if you need it.

    Please advise on how I need to proceed.
    Many Thank in advance. Do I need to make Police report?

    Thanks, Komathi

    • Chat Property Malaysia
      Author

      First thing to check is the Tenancy agreement content.
      As long as before you move out, you make the house same as the day you move in, it should not charge you RM550 for the contractor.
      And you are able to ensure the house cleanliness, the landlord should not charge you the cleaning fees.

  23. Emu

    Hi.. I recently signed a tenancy agreement (TA). However the TA was not stamped by LHDN, but it has RM10 Setem stick to it (purchased fm post office) When i ask the owner, he said no need to waste the stamp duty money as using the RM10 stamp (blue colour) is enough and valid. Is the TA still consider valid? As owner TA copy also using the RM10 setem.

  24. Ramz

    Dear Sir , My Family have been renting a commercial Land for pass 35 year , Last Year the tenant inform us to vacate the land as it has been sold . When i ask my parents there we no tenancy agreement done as they we paying rental as low as RM 80 per-month and now increased to RM 1,500 in passed 10 years . We have ask for compensation but they refuse to pay . Is there anyway we can fight . We also stop the operating business from date given notice.

  25. kumuthen Muthucumaru

    Hi there, the tenant has been move out before the agreement date end and the tenant informed me he will move out within a week, the agreement still valid for 6 month.

    My question is, if I want to do new agreement do I need to cancel the old agreement? if yes is there any charges.

    Please advise.

  26. Kooyi

    Hi there, would like to ask is the TA need to prepare by lawyer form?
    If self do TA can get stamping as well? Thanks!

  27. Queenie

    Hi Everyone,

    i have provided the Tenancy Agreement drafting services with reasonable price. If anyone interest, please drop me an email at ——–legaladvisor88@yahoo.com.

    Besides, i have have provided other type of Agreement drafting services and Lawyer recommendation services for Court Proceeding.

    Thanks and Regards,
    Queenie

  28. Lya

    Hey, I have some questions.
    I had rent a apartment on 1st March 2016, ,we have sign agreement( 1year) but owner don’t want take the agreement to make stamping cause he want wave the tax. So if I want move out before 28 Feb 2017, is it have any problem? How about if he don’t let me move out ? Or he don’t give me back the security deposit?
    Thanks.

  29. RP

    Hi All,

    I rented a house @jalan Ipoh in feb 2016, but my upstairs creating a lot of noise so its impacting my office work so I asked owner, management, agent to do something they gave stern warning to upstairs tenant but no use. Now I asked my owner I am leaving your house and refund me my deposit so now owner saying for deposit u r liase with agent and agent saying u will not get the deposit as u r not completing 1 year contract. What can I do in this case??
    Actually my upstairs are bar tender so they comes up after drinking by 2-3 AM then creating nuisance, these peoples are used to police cases, police put them behind the bars 2-3 times. Please suggest

    • Chat Property Malaysia
      Author

      You need to refer to your Tenancy agreement for details. Is it stating need to stay for 1 year before can take back your deposit?

  30. Soon

    Hi there,

    What does 1+1 means in the TA? If the tenant wants to continue the 2nd year, can I premise on the same TA? or do I need a new stamped TA?

  31. Windy

    Hi, I need some advise. My monthly rental is RM1500 but the agent charge me RM 400 for the stamping fee. Is’t fair for this price? Please advice and thx a lot.

  32. MhD

    Hi Sir,

    What is the normal service fee from an agent for preparing and stamping tenancy agreement? I’m renting a unit with RM1500 rental and agent is asking RM400 which looks very high to me. Please advise. Thanks

  33. Tenant

    My old tenancy agreement with the landlord ended in June 2016. I continued to service the rental after June 2016 with the same rental for the next 4 months Due to some unforeseen circumstances the landlord did not renew the tenancy agreement until Oct 2016. Can the landlord increase the rental, make a new tenancy agreement , backdate it and ask me to pay the difference of the rental for the last 4 months ?

  34. Willie

    Agent contributes no value at all if he/she does not provide Tenancy Agreement and Stamping fee services.
    They have commissions of at least 1 month of the rent and they should take this as part of the cost to do this business. STAY UNITED IN INSISTING AGENT TO EAT UP THIS COST!

  35. Willie

    Agent contributes no value at all if he/she does not provide Tenancy Agreement and Stamping fee services.
    They have commissions of at least 1 month of the rent and they should take this as part of the cost to do this business. STAY UNITED IN INSISTING AGENT TO EAT UP THIS COST!

    Isnt it funny to ask your potential customer (tenant) to prepare the TA?

  36. CC

    Hi Im the owner who get the stamping done by a property agency. The stamping fees charged is RM106 for 2yrs contracts (rental rm1200) . My question is why I was given the duplicate copy which the stamping fees shown is RM10, while the tenant is holidng the first copy stated stamping fees RM106? According to agent, this is the correct procedure. Please help. Thanks

  37. foo

    hi,

    I need advice. recently I bought a suite under commercial title. I have a tenant interested for office and also accommodation. how should I prepared the tenancy agreement? should I put it under residential and office use only?

    is the commercial and the residential stamp duty same price?

  38. foo

    for fully furnished suite, we normally provide air cond, fridge, washing machine, and other electrical item…

    if the items fail to work, and aircond need yearly maintenance, can we put in the agreement that the repair and maintenance bear by tenant?

      • Chong

        I used to rent out the propert in room separately instead of entire unit, posting on iBilik and Roomz room rental platforms. In this case, do we really need to stamp the agreement with amount og a few hundreds?

        I really don’t think so.

  39. Chong

    I used to rent out the propert in room separately instead of entire unit, posting on iBilik and Roomz room rental platforms. In this case, do we really need to stamp the agreement with amount og a few hundreds?

    I really don’t think so.

  40. Ben

    Hi,

    My tenancy agreement about to expired soon. My landlord mention if need to renew the tenancy agreement …

    He suggest to me the letter do not need to go for stamping so is much more cheaper, just RM50

    Why need RM50 if not stamped?

    If I preferred it to be in legal and correct way on renewal..what is procedure and cost to do renewal of tenancy agreement of my rental is rm1500.

    Please advise

    Thanks

  41. Fan

    Hi,
    I’m renting and condo in hartamas for RM2500
    The agent is charging me RM621.40 for professional drafting including runner, admin and stamping fee.

    I think it’s really expansive. Can somebody advise how much is the reasonable charges?

  42. New Tenant

    I’m perplexed, property agent is charging me RM400 for stamping and disbursement of the tenancy agreement, from what I read above, the cost is quite high, any advise ?

  43. Ching

    Hi it’s my first time renting out a unit.
    The tenant intended to rent for 3 months only. May I know how do I prepare the TA for short term renting ?
    is it prepared as per those for one year/above?
    And the stamp duty to be paid will fall under category of 1year?

    TIA!!

    • Chat Property Malaysia
      Author

      You may just draft your TA duration accordingly.
      However, the stamping charges is for 1 year.

  44. Almond

    Hi,

    Do we need to do stamping on Lease Extension Agreement? Is it still necessary with everything remain unchanged besides rental increment? Thanks

  45. Laren

    Hi. My tenancy is dated 1 December 2016. I will be sending the tenancy agreement for stamping next week. Is there any timeline to stamp the tenancy? If so, what are the penalties?

  46. Mei

    Hi Chat Property Malaysia, my tenancy for land amounting RM108,220.00 per month for 3 years. So the stamping i get is RM20,740.00. The amount seems huge, is this correct? Thanks.

    • Chat Property Malaysia
      Author

      Hi Mei:

      I do not have experience for such a high rental. If the stamping is come from the LHDN, i trust it is true.

  47. Jack

    Hi. Good Evening.
    I’m a tenant, my one year TA will be expired soon (end March 17). If the owner want to increase the rental. Can I just re-type the TA (last year prepared by agent) all over again just change the date and the new rental price and get it sign by owner and me and just go to LHDN get it stamped? Can i Do that? When should i get the stamping? 1st of April or after the date or before current TA period ends?

    • Chat Property Malaysia
      Author

      Yes, you can just retype the content of the previous year TA.
      Yes from 1 april onward you can go to LHDN for stamping.

  48. Srinivasa

    Hi I’m srinivasa. I’m Indian. This month I plan to bring family to Malaysia. What is the rental process in Malaysia. What are precautions I need take rental process. Please let me know.

    • Chat Property Malaysia
      Author

      Hi Srinivasa:

      Welcome to Malaysia.
      First, do engaged a reliable Property agent to assist you.
      The Property agent should have their license and agent number.

      View the property yourself with the agent.
      The last important thing need to do is signing of the Tenancy Agreement which wil protect both parties interest.

  49. Fender

    My landlord charging me a tenancy agreement that cost rm400. Isn’t that too much for a condo? How do I know it’s legit or not? What should I ask future/not owner?

    • Chat Property Malaysia
      Author

      Hi fender, you may used the table provided in the article to calculate the cost of the TA

  50. ST

    I will be renting out my house effective 28/5/2017 (Sunday).
    When can I stamp tenancy agreement, before, one the 28/5/17 (Sunday) or how many days after.
    Any penalty for delayed stamping?

  51. Mrs. Shaw

    Hi, I will be renting out my property and have gone thru’ an agent
    in this case who pays the stamping fees, the tenant or the agent?
    Please advise. Thanks

    • Chat Property Malaysia
      Author

      Hi Mrs Shaw:

      It depend on the agreement from both party. It can be either party or shared

  52. Mun Yee Cheong

    i have one (main / very first) stamped TA (detailed) – only 1 year.
    So, for renewal / extension, i just prepare a 1 piece letter says extended 1 year period but all other T&C from the main TA remained with title : SUPPLEMENTARY AGREEMENT FOR EXTENSION OF TENANCY)

    question : do i still need to get the extension letter stamped?

    • Chat Property Malaysia
      Author

      Hi Cheong:

      Question to you, what is the advantage of this?
      Why not just renew the Tenancy by signing a new Tenancy agreement where all the terms are the same?

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