Stamp Duty 2025: Rental Contracts (Tenancy Agreements) in Malaysia

Understanding Stamp Duty on Tenancy Agreements in Johor Bahru

A rental contract (tenancy agreement) is a legally binding document between a landlord and a tenant that sets out the rights, obligations, and terms of tenancy. Under the Stamp Act 1949, all tenancy agreements in Malaysia must be stamped to be legally valid and enforceable.

As a Chartered Accountants Johor Bahru, Tax Consultancy Firm Johor Bahru, and Accounting Firm Johor Bahru, we summarise the key stamp duty requirements below to help landlords and tenants remain compliant and avoid penalties.

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📄 What Is a Tenancy Agreement?

A tenancy agreement generally includes:

• Property address

• Tenancy duration

• Monthly rental and security deposits

• Rights, responsibilities, and other terms & conditions

Tenancy agreements apply to:

• Residential houses & apartments

• Commercial shops

• Offices and business premises

⚠️ Both landlord and tenant share responsibility for stamp duty payment.

Engaging a professional Tax Agent Johor Bahru ensures proper calculation and timely submission.

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⏳ Stamping Period for Rental Contracts

• Tenancy agreements must be stamped within 30 days from the date of signing

• The rule applies whether the agreement is signed in Malaysia or overseas

Late stamping may result in penalties and may trigger tax audit services Johor Bahru.

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🏷️ Stamp Duty Rates for Rental (Tenancy) Agreements

Rental Period	Stamp Duty Rate	Remarks
Not exceeding 1 year	RM1	Per RM250 or part thereof
Exceeding 1 year but ≤ 3 years	RM3	Per RM250 or part thereof
Exceeding 3 years but ≤ 5 years	RM5	Per RM250 or part thereof
Exceeding 5 years / Indefinite	RM7	Per RM250 or part thereof

Accurate computation by an experienced Accounting Services Johor Bahru provider helps avoid underpayment risks.

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📊 Ad Valorem Stamp Duty (Substantial Property Rights)

When a tenancy agreement involves the transfer of substantial property rights (e.g. developer-controlled properties similar to a sale or disposition), ad valorem stamp duty applies:

Value of Land Interest	Stamp Duty Payable
First RM100,000	1%
Next RM400,000	2%
Next RM500,000	3%
Above RM1,000,000	4%

Professional review by a Chartered Accountants Johor Bahru firm is highly recommended for complex property transactions.

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💼 Ensure Stamp Duty Compliance with Professionals

As licensed Tax Agents Johor Bahru, Audit Firm Johor Bahru, and Accounting Firm Johor Bahru, we provide complete solutions including:

• Rental contract (tenancy agreement) stamping

• Stamp duty advisory & compliance

• Property transaction & ad valorem duty calculations

• Corporate & individual tax advisory

• Backlog accounting services Johor Bahru

• Company incorporation services Johor Bahru & company set up Johor Bahru

📞 Contact us today to ensure your tenancy agreements and property-related documents are fully compliant, accurate, and legally protected.