Stamping Duty Video Description
LHDN Stamp Duty
The Inland Revenue Board of Malaysia, also known as Lembaga Hasil Dalam Negeri Malaysia (LHDN), plays a vital role in the country's taxation system. Among its responsibilities is overseeing the collection of stamp duty on various documents, including tenancy agreements.
An agreement without proper stamping could lead to your agreement being deemed invalid legally. There could also be financial penalties range
from double to 10 times the original stamp duty amount. The scarier possible complication for both the landlord and tenant would be an audit and investigation
by LHDN which could lead to additional penalties and legal actions.
What is Stamp Duty?
Stamp duty is a tax
imposed on certain legal documents to make them legally binding. In Malaysia,
this duty is regulated under the Stamp Act 1949. When it comes to tenancy
agreements, both landlords and tenants are obligated to pay stamp duty to the LHDN before a rental can happen.
How to Calculate Stamp Duty Fee
The formula to calculate your stamp duty fee would be:
[(Rental Fee x 12) - 2400 / 250] x rental period.]
- Rental period of one year = RM1
- Rental period of 2-3 years = RM2
- Rental period of more than 3 years = RM4
For example, if your rental is RM1,800.00 per month and you'll be renting the premise for a year, the stamp duty fee would be [(1800 x 12) - 2400 / 250] x Rm1 = RM77.
Lembaga Hasil Dalam Negeri Malaysia (LHDN) – Stamp Duty for Tenancy Agreement