27 Jan, 2023
Tenancy Agreement Stamp Duty 2019
Posted by: Hector Danilo Pompa Dominique In: Uncategorized
Tenancy Agreement Stamp Duty 2019: What You Need to Know
When it comes to renting a property in Malaysia, one of the most important documents you need to have is a tenancy agreement. This document provides the terms and conditions of the tenancy, including the rights and responsibilities of both landlord and tenant. But did you know that starting from January 1st, 2019, tenancy agreement stamp duty rates have changed?
Here`s what you need to know about tenancy agreement stamp duty 2019:
1. What is tenancy agreement stamp duty?
Tenancy agreement stamp duty is a tax that`s imposed on tenancy agreements in Malaysia. It`s a form of indirect tax that`s collected by the government via the Inland Revenue Board (LHDN). The stamp duty is calculated based on the rental amount and the duration of the tenancy.
2. How much is the stamp duty for tenancy agreements in 2019?
Starting from January 1st, 2019, the stamp duty rates for tenancy agreements have changed. Here`s the current rate:
– For tenancy agreements with a rental of up to RM100,000 per annum and a duration of less than three years, the stamp duty is RM1.
– For tenancy agreements with a rental of more than RM100,000 per annum or a duration of more than three years, the stamp duty is calculated at 0.5% of the total rental or consideration.
3. Who is responsible for paying the stamp duty?
According to the Stamp Act 1949, the responsibility of paying the stamp duty falls on the tenant. However, it`s common practice for the tenant and landlord to negotiate and agree on who will pay the stamp duty.
4. When should the stamp duty be paid?
The stamp duty should be paid within 30 days from the date of the tenancy agreement. Failure to pay the stamp duty can result in penalties and legal consequences.
5. How is the stamp duty paid?
The stamp duty can be paid via two methods:
– Physical stamping: The tenancy agreement can be stamped physically at any LHDN branch. The original agreement must be stamped, and a copy of the agreement with the stamp must be retained by the tenant.
– Online stamping: The tenancy agreement can be stamped online via the e-stamping system provided by LHDN.
In conclusion, tenancy agreement stamp duty is an important aspect of renting a property in Malaysia. With the 2019 changes in stamp duty rates, tenants and landlords should be aware of their responsibilities and obligations. By understanding the rules and regulations surrounding tenancy agreement stamp duty, you can ensure that your rental process is legal, ethical, and hassle-free.
