A rental contract (tenancy agreement) is a legally binding document between a landlord and a tenant that sets out the rights, obligations, and terms of tenancy. Under the Stamp Act 1949, all tenancy agreements in Malaysia must be stamped to be legally valid and enforceable.
As a Chartered Accountants Johor Bahru, Tax Consultancy Firm Johor Bahru, and Accounting Firm Johor Bahru, we summarise the key stamp duty requirements below to help landlords and tenants remain compliant and avoid penalties.
A tenancy agreement generally includes:
Property address
Tenancy duration
Monthly rental and security deposits
Rights, responsibilities, and other terms & conditions
Tenancy agreements apply to:
Residential houses & apartments
Commercial shops
Offices and business premises
⚠️ Both landlord and tenant share responsibility for stamp duty payment.
Engaging a professional Tax Agent Johor Bahru ensures proper calculation and timely submission.
Tenancy agreements must be stamped within 30 days from the date of signing
The rule applies whether the agreement is signed in Malaysia or overseas
Late stamping may result in penalties and may trigger tax audit services Johor Bahru.
| Rental Period | Stamp Duty Rate | Remarks |
|---|---|---|
| Not exceeding 1 year | RM1 | Per RM250 or part thereof |
| Exceeding 1 year but ≤ 3 years | RM3 | Per RM250 or part thereof |
| Exceeding 3 years but ≤ 5 years | RM5 | Per RM250 or part thereof |
| Exceeding 5 years / Indefinite | RM7 | Per RM250 or part thereof |
Accurate computation by an experienced Accounting Services Johor Bahru provider helps avoid underpayment risks.
When a tenancy agreement involves the transfer of substantial property rights (e.g. developer-controlled properties similar to a sale or disposition), ad valorem stamp duty applies:
| Value of Land Interest | Stamp Duty Payable |
|---|---|
| First RM100,000 | 1% |
| Next RM400,000 | 2% |
| Next RM500,000 | 3% |
| Above RM1,000,000 | 4% |
Professional review by a Chartered Accountants Johor Bahru firm is highly recommended for complex property transactions.
As licensed Tax Agents Johor Bahru, Audit Firm Johor Bahru, and Accounting Firm Johor Bahru, we provide complete solutions including:
Rental contract (tenancy agreement) stamping
Stamp duty advisory & compliance
Property transaction & ad valorem duty calculations
Corporate & individual tax advisory
Backlog accounting services Johor Bahru
Company incorporation services Johor Bahru & company set up Johor Bahru
📞 Contact us today to ensure your tenancy agreements and property-related documents are fully compliant, accurate, and legally protected.
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