How much stamp duty is due on a tenancy agreement?

Who collects stamp duty on tenancy agreements?

Stamp duty is administered by the Inland Revenue Board (LHDN) and paid through the e-Duti Setem system, reached from the MyTax portal ^[4]. Tenancy agreements are charged under item 49 of the First Schedule to the Stamp Act 1949 (Akta Setem 1949) ^[1].

An agreement for a term of three years or less counts as a tenancy. An agreement for more than three years is a lease, which also needs Form 15A and registration at the land office ^[1].

What are the stamp duty rates for tenancy agreements since 2025?

Duty is calculated for every RM250, or part of it, of the annual rent, and the rate depends on the term of the agreement ^[1].

• One year or less: RM1 for every RM250 ^[1].
• More than one year up to three years: RM3 for every RM250 ^[1].
• More than three years up to five years: RM5 for every RM250 ^[1].
• More than five years or no fixed term: RM7 for every RM250 ^[1].

Is stamp duty still charged on a low rent?

Yes. The Finance Act 2024 abolished the exemption for annual rent up to RM2,400 from 1 January 2025 ^[2]. Every instrument is now charged a minimum duty of RM10 ^[2].

How do you calculate stamp duty for a monthly rent?

Multiply the monthly rent by 12, divide by 250 and round up, then multiply by the rate for your agreement's term ^[1].

Our worked example: rent of RM1,500 a month is RM18,000 a year, which is 72 units of RM250, so a two-year agreement is charged 72 x RM3 = RM216 ^[1]. This is our own example based on LHDN rates, not an official LHDN example.

Each stamped copy or duplicate of the agreement is charged a fixed duty of RM10 and gets its own stamp certificate ^{[6] [7]}.

How do you stamp a tenancy agreement yourself on MyTax?

Since 1 January 2026, tenancy and lease agreements are in Phase 1 of the Stamp Duty Self-Assessment System (STSDS) ^[3]. The form you submit is treated as assessed at the time it is submitted, so there is no notice of assessment to wait for ^[3].

Log in to MyTax, choose e-Duti Setem and the stamping type Sewa atau Pajakan (tenancy or lease) ^[4]. Every party to the agreement, including the tenant, needs a Tax Identification Number (TIN) ^[7].

Stamping records must be kept for seven years ^[3].

What is the deadline and how much is the late penalty?

The agreement must be submitted for stamping within 30 days of the date it is signed, and the duty must be paid within 30 days of the date the form is submitted ^[4].

If it is up to three months late after the deadline, the penalty is RM50 or 10% of the duty underpaid, whichever is higher ^[5]. If it is more than three months late, the penalty is RM100 or 20%, whichever is higher ^[5].

For the first year of STSDS, LHDN does not impose penalties on forms filled in incorrectly ^[4].

Who pays the stamp duty, the tenant or the landlord?

Under LHDN guidelines, duty on the original agreement is borne by the tenant, and duty on copies is borne by the landlord ^[1]. In practice, both parties can agree otherwise in the agreement.

An unstamped agreement cannot be admitted as evidence in court under section 52 of the Stamp Act ^[6]. A late agreement can still be stamped by paying the penalty ^[5].

Frequently asked questions

My rent is only RM500 a month. Does it still need stamping?

Yes. The exemption for annual rent up to RM2,400 was abolished from 1 January 2025, and every agreement is charged a minimum duty of RM10 ^[2].

Can I stamp it myself without a lawyer?

Yes. Stamping is done through e-Duti Setem on MyTax, and since 2026 tenancy agreements are stamped by self-assessment ^{[3] [4]}.

How much does it cost to stamp a copy of the agreement?

Each stamped copy is charged a fixed duty of RM10 and gets its own stamp certificate ^{[6] [7]}.

I signed two months ago but have not stamped it yet. What happens?

The 30-day deadline has passed, so a late penalty applies: RM50 or 10% of the duty, whichever is higher, if it is still within three months after the deadline ^{[4] [5]}.

Can stamp duty be deducted from rental income tax?

Not for the first tenant. The LHDN Public Ruling lists stamp duty and legal fees for preparing the agreement as initial expenses that are not deductible ^[8].