all about stamping of tenancy agreement

What is tenancy agreement

Stamping of a tenancy agreement refers to the process of affixing a stamp duty to a tenancy agreement document to make it legally valid and enforceable. Stamp duty is a form of tax imposed on certain legal documents to ensure their legality and admissibility in court. The stamp duty rates and requirements are outlined in the Stamp Act 1949.

When a landlord and a tenant enter into a tenancy agreement, it is common practice to have the agreement stamped by the Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri Malaysia, LHDN) to comply with the law. Stamping the tenancy agreement serves as evidence of payment of the required stamp duty and indicates that the document is legally binding.

The stamp duty amount for a tenancy agreement depends on factors such as the duration of the tenancy, the monthly rent, and whether the property is residential or commercial. The stamp duty rates may change over time, so please use our stamp duty calculator for the latest rates for free or consult legal professionals.

Failing to stamp a tenancy agreement could result in legal complications, as the document might not be admissible in court as evidence in case of disputes. Therefore, it's important to ensure that any tenancy agreement is properly stamped according to the prevailing stamp duty rates and regulations in Malaysia.