When it comes to stamping a tenancy agreement, one of the most important steps is accurately calculating the stamp duty payable. This duty is essentially a tax levied by the government on the registration of certain documents, including tenancy agreements.
The stamp duty payable on a tenancy agreement is generally calculated based on the rental amount and the lease period. In Malaysia, the stamp duty rates for tenancy agreements are as follows:
– RM1 for agreements with rental of less than RM2,500 per month and lease period of less than 1 year
– RM2 for agreements with rental of less than RM2,500 per month and lease period of 1 year or more
– RM10 for agreements with rental of RM2,500 or more per month and lease period of less than 1 year
– RM20 for agreements with rental of RM2,500 or more per month and lease period of 1 year or more
To calculate the stamp duty payable, you simply need to multiply the rental amount by the number of years in the lease and then refer to the above rates to determine the final amount. For example, if the rental amount is RM2,000 per month and the lease period is 2 years, the stamp duty payable would be RM4 (RM2 x 2 years).
It`s important to note that stamp duty must be paid within 30 days of the execution of the tenancy agreement, and failure to do so may result in late payment fees and penalties. Additionally, stamp duty may be paid electronically via the Malaysian Inland Revenue Board`s e-stamping system, which allows for a more efficient and convenient payment process.
Overall, accurately calculating the stamp duty payable for a tenancy agreement is crucial to ensure compliance with government regulations and avoid any potential penalties or legal issues. By understanding the applicable rates and utilizing available resources such as the e-stamping system, landlords and tenants can ensure a smooth and hassle-free stamping process.