Tenancy Agreements
How stamp duty is calculated for rental agreements based on rent and lease duration.
Tenancy agreements use ad valorem duty, meaning the duty amount depends on the monthly rent and the length of the lease.
How Tenancy Duty Works
The calculation has three parts:
- Determine the rate based on lease duration
- Calculate the number of units based on rent
- Apply the rate to get the base duty
Rate Tiers
The rate per unit depends on how long the lease runs:
| Lease duration | Rate per unit |
|---|---|
| Up to 1 year | RM 1 |
| More than 1 year, up to 3 years | RM 3 |
| More than 3 years, up to 5 years | RM 5 |
| More than 5 years, or indefinite | RM 7 |
Unit Calculation
The number of units is based on the monthly rent amount:
Units = Monthly Rent / RM 250 (rounded up to the nearest whole number)
For example:
- RM 1,000 rent = 4 units (1,000 / 250)
- RM 1,200 rent = 5 units (1,200 / 250 = 4.8, rounded up)
Minimum Duty
The minimum stamp duty for any tenancy agreement is RM 10, even if the calculated amount comes out lower.
Duplicate Fees
If you have duplicate copies of the agreement, a fee of RM 10 per duplicate is added to the total.
Example
A tenancy agreement with RM 1,500 monthly rent for a 2-year lease:
| Step | Calculation | Result |
|---|---|---|
| Units | RM 1,500 / RM 250 | 6 units |
| Rate | 2-year lease (more than 1, up to 3 years) | RM 3 per unit |
| Base duty | 6 units x RM 3 | RM 18.00 |
| Late penalty | None (submitted within 30 days) | RM 0.00 |
| Duplicate fee | No duplicates | RM 0.00 |
| Total | RM 18.00 |
Late Penalties
The same late penalty rules apply to tenancy agreements as to other contract types.