1. What is Malaysian Tenancy Stamp Duty?

Malaysian tenancy stamp duty is a tax levied on tenancy agreements under the Stamp Act 1949. It is calculated as 0.5% of the annual rental value, with a maximum cap of RM 500.

2. How Does the Calculator Work?

The calculator uses the stamp duty formula:

Where:

• \( Rental\ Value \) — Annual rental amount in Malaysian Ringgit
• \( 0.5\% \) — Standard stamp duty rate for tenancy agreements
• \( RM\ 500 \) — Maximum stamp duty payable

Explanation: The calculation applies a 0.5% rate to the annual rental value, but never exceeds RM 500 regardless of the rental amount.

3. Importance of Stamp Duty Calculation

Details: Proper stamp duty payment is legally required for tenancy agreements to be admissible as evidence in court. Unstamped or insufficiently stamped agreements may not be recognized in legal proceedings.

4. Using the Calculator

Tips: Enter the total annual rental value in Malaysian Ringgit. The calculator will automatically compute the stamp duty and apply the RM 500 cap if applicable.

5. Frequently Asked Questions (FAQ)

Q1: What happens if stamp duty is not paid?
A: Unstamped agreements are not admissible as evidence in court and may be subject to penalties including fines.

Q2: Is the RM 500 cap applicable to all tenancy agreements?
A: Yes, the RM 500 cap applies to all tenancy agreements regardless of the rental amount or duration.

Q3: When should stamp duty be paid?
A: Stamp duty should be paid within 30 days of executing the tenancy agreement to avoid penalties.

Q4: Are there different rates for different agreement durations?
A: No, the 0.5% rate applies to all tenancy agreements regardless of duration, with the RM 500 cap.

Q5: Where can I pay the stamp duty?
A: Stamp duty can be paid at LHDNM (Inland Revenue Board of Malaysia) offices or authorized stamping centers.