Stamping fees are an essential part of any tenancy agreement in Malaysia. By law, all tenancy agreements must be stamped by the Inland Revenue Board to be considered legally binding. This article will provide you with a step-by-step guide on how to calculate the stamping fee for your tenancy agreement in Malaysia.
Step 1: Determine the length of the tenancy agreement
The stamping fee for a tenancy agreement in Malaysia depends on the length of the agreement. If the tenancy agreement is for a period of less than one year, the stamping fee is a flat rate of RM 1.00. However, if the tenancy agreement is for a period of one year or more, the stamping fee will be based on the rental amount specified in the agreement.
Step 2: Determine the rental amount
To calculate the stamping fee for a tenancy agreement in Malaysia, you must determine the total rental amount specified in the agreement. This amount includes the monthly rental rate multiplied by the number of months in the tenancy agreement.
Step 3: Calculate the stamping fee
Once you have determined the rental amount, you can calculate the stamping fee using the following formula:
Stamping fee = RM 10 + (RM 1 for every RM 250 or part thereof of the first RM 2,400 of the rental amount) + (RM 2 for every RM 250 or part thereof of the rental amount exceeding RM 2,400)
For example, if the rental amount specified in the tenancy agreement is RM 3,000 per month for a period of two years, the stamping fee would be calculated as follows:
Rental amount = RM 3,000 x 24 months = RM 72,000
Stamping fee = RM 10 + (RM 1 for every RM 250 or part thereof of the first RM 2,400 of the rental amount) + (RM 2 for every RM 250 or part thereof of the rental amount exceeding RM 2,400)
= RM 10 + (RM 9.60) + (RM 68.80)
= RM 88.40
Step 4: Pay the stamping fee
Once you have calculated the stamping fee for your tenancy agreement, you must pay the fee to the Inland Revenue Board. You can do this by visiting any stamping office in Malaysia or online through e-stamping.
In conclusion, stamping fees for tenancy agreements in Malaysia can be calculated using the above formula. It is essential to make sure that your tenancy agreement is legally stamped to ensure that it is legally binding and enforceable. Failure to do so may result in significant financial and legal consequences.