When it comes to renting an apartment or a property, a tenancy agreement is an essential document that outlines the terms and conditions of the lease. Signing a tenancy agreement is crucial for both the landlord and the tenant as it provides legal protection and helps prevent disputes.

What is a Tenancy Agreement Stamp?

In Malaysia, a tenancy agreement must be stamped by the Inland Revenue Board (Lembaga Hasil Dalam Negeri or LHDN) to be considered valid. The stamp duty for a tenancy agreement is calculated based on the duration of the lease and the annual rental value of the property.

The stamp duty for a tenancy agreement is typically paid by the tenant, although the landlord can also agree to split the cost or pay the stamp duty themselves. Once the tenancy agreement is stamped, it becomes a legally binding document that can be used in court if necessary.

Why is a Tenancy Agreement Stamp Important?

Stamping a tenancy agreement is not just a legal requirement, but it also provides security for both the tenant and the landlord. Here are some reasons why it is important to stamp your tenancy agreement:

1. Legally Binding: A stamped tenancy agreement is legally binding and can be enforced in court if there is a dispute.

2. Protects Tenant and Landlord: A tenancy agreement protects both the tenant and landlord by clearly outlining the terms and conditions of the lease, such as the rent, deposit, and maintenance responsibilities.

3. Proof of Tenancy: A stamped tenancy agreement serves as proof of tenancy and can be used to establish residency for immigration purposes or to apply for a bank loan.

4. Avoids Penalties: Failure to stamp a tenancy agreement can result in penalties and fines from the LHDN.

5. Easy to Register: A stamped tenancy agreement can be easily registered with the relevant authorities, such as the National Registration Department or the Tenancy Tribunal.

How to Stamp a Tenancy Agreement

To stamp a tenancy agreement in Malaysia, you will need to follow these steps:

1. Obtain a copy of the tenancy agreement.

2. Calculate the stamp duty based on the duration of the lease and the annual rental value of the property.

3. Purchase the necessary stamps from the LHDN or an authorized stamp vendor.

4. Affix the stamps to the tenancy agreement and cancel them with the initials of the vendor or the LHDN.

5. Submit the stamped tenancy agreement to the LHDN within 30 days of the date of the agreement.

Conclusion

In conclusion, stamping a tenancy agreement is an essential step in the renting process in Malaysia. It protects both the tenant and landlord and ensures that the lease is legally binding. Make sure to calculate the stamp duty correctly and submit the stamped agreement to the LHDN within the given timeframe to avoid penalties.