Unlock Smarter Investments with Our Rental Yield & Property Calculators

Understanding Stamp Duty for Tenancy Agreements in Malaysia

Introduction

Renting a property in Malaysia involves various costs, including stamp duty on the tenancy agreement. Stamp duty is a tax levied by the government on certain legal documents, including tenancy agreements. It's essential to understand the applicable rates and how to calculate them to avoid penalties and ensure a smooth rental process.

In 2025, significant changes to Malaysia's stamp duty regulations, particularly concerning tenancy agreements, have been introduced. To assist landlords and tenants in navigating these updates, we've developed a user-friendly Stamp Duty Calculator tailored for tenancy agreements.

Understanding the 2025 Stamp Duty Amendments

The Malaysian government has revised the stamp duty structure for tenancy agreements, effective January 1, 2025. Key changes include:

• Revised Stamp Duty Rates: The previous three-tier system based on lease duration has been expanded to a four-tier system, with rates ranging from RM1.00 to RM7.00 for every RM250 of average annual rent.
• Removal of Exemptions: The exemption from stamp duty for the first RM2,400 of average annual rent has been abolished.
• Increased Penalties for Late Stamping: Penalties for late stamping have been increased to a maximum of 10% if stamped within three months after the due date, and 20% thereafter.

Stamp Duty Calculation for Tenancy Agreement

Total Rent per Year:

• Monthly Rent × 12 = Total Rent Per Year

Stamp Duty Formula:

• For agreements 1 year or less:
• Total Rent Per Year ÷ 250 × RM 1
• For agreements 2 to 3 years:
• Total Rent Per Year ÷ 250 × RM 3

Additional Cost:

• Add RM 10 for each additional copy of the agreement.