As a tenant in Malaysia, one of the most important things to keep in mind is the need to have a tenancy agreement in place. This document outlines the terms and conditions of your lease with the landlord, protecting you and ensuring a clear understanding of responsibilities and rights for both parties. One important aspect to consider is the stamping fee for your tenancy agreement.
What is a Tenancy Agreement Stamping Fee?
In Malaysia, all tenancy agreements must be stamped to be legally valid. This involves a physical stamping process, similar to a notary public in other countries, that confirms the agreement has been signed and witnessed. The purpose of stamp duty is to ensure that an agreement is filed and recorded, which can be used as evidence in court if necessary.
The stamp duty fee is determined based on two factors: the duration of the lease and the yearly rent amount as stated in the agreement. For example, if the lease is for two years with a monthly rent of RM2,500, the stamping fee would be RM212.50.
Who is Responsible for the Stamping Fee?
In Malaysia, it is the tenant`s responsibility to pay for the stamping fee. This is because the tenancy agreement protects their interests as the tenant. However, it is not uncommon for landlords to require their tenants to pay the stamping fee as part of the negotiation process. It is important to clarify this responsibility during the negotiation to avoid any confusion or dispute later on.
How to Stamp a Tenancy Agreement
To stamp a tenancy agreement, you will need to complete the following steps:
1. Obtain the tenancy agreement document from your landlord or property agent.
2. Visit a stamping office or authorized agent to get the stamp duty endorsement on your agreement. You can find these offices listed on the Lembaga Hasil Dalam Negeri (LHDN) website.
3. Fill in the necessary details, including the duration of the tenancy and rent amount.
4. Pay the stamping fee.
5. Once stamped, the tenancy agreement is considered legally valid.
It is crucial to stamp your tenancy agreement within 30 days of signing it. Failure to do so can result in penalties and fines, which can be costly.
In conclusion, all tenants in Malaysia should be aware of the tenancy agreement stamping fee and their responsibility to pay it. By understanding the process of stamping a tenancy agreement, tenants can avoid legal disputes and protect their interests as renters. Always remember to stamp your tenancy agreement within the designated time frame to avoid any penalties and fees.