Calculating stamp duty for tenancy agreements can be a daunting task for many people, especially if you are new to the process. Stamp duty is a tax imposed by the government on documents related to the transfer of property ownership, including tenancy agreements. The amount of stamp duty payable on the tenancy agreement will depend on several factors, including the rental amount and the length of the tenancy. In this article, we will provide you with a step-by-step guide on how to calculate stamp duty for tenancy agreements.

Step 1: Determine the Total Rent Payable

The first step in calculating stamp duty for a tenancy agreement is to determine the total rent payable for the entire duration of the tenancy. This includes all rental payments, including any additional fees such as service charges or maintenance costs.

Step 2: Determine the Stamp Duty Rate

Once you have determined the total rent payable, you will need to determine the applicable stamp duty rate for your tenancy agreement. The stamp duty rate varies depending on the rental amount and the duration of the tenancy.

For tenancy agreements with a rental amount of less than RM2,500 per month, the stamp duty rate is fixed at RM1. For tenancy agreements with a rental amount between RM2,500 and RM5,000 per month, the stamp duty rate is 2% of the total rent payable. For tenancy agreements with a rental amount above RM5,000 per month, the stamp duty rate is 2% of the total rent payable, plus an additional RM250.

Step 3: Calculate the Stamp Duty Payable

Once you have determined the applicable stamp duty rate for your tenancy agreement, you can calculate the stamp duty payable by multiplying the total rent payable by the stamp duty rate. For example, if your total rent payable is RM10,000 per month for a tenancy agreement with a duration of 12 months, the stamp duty payable would be:

RM10,000 x 2% = RM200

Step 4: Pay the Stamp Duty

The final step in calculating stamp duty for a tenancy agreement is to pay the stamp duty. Stamp duty must be paid within 30 days of the execution of the tenancy agreement. You can pay the stamp duty at any stamp duty office or online through the e-Stamping system.

In conclusion, calculating stamp duty for tenancy agreements is a simple process that requires you to determine the total rent payable, the applicable stamp duty rate, and then calculate the stamp duty payable. By following the steps outlined in this article, you can easily calculate and pay the stamp duty for your tenancy agreement and avoid any penalties or legal issues in the future.