How to Do Tenancy Agreement Stamping

As a tenant or landlord in Malaysia, it is mandatory to get your tenancy agreement stamped by the Inland Revenue Board (IRB) within 30 days of the tenancy start date. If you fail to do so, you risk a fine or legal complications. Here is a step-by-step guide on how to do tenancy agreement stamping.

Step 1: Prepare the tenancy agreement

The tenancy agreement should cover all the necessary details of the rental agreement, including the rental amount, length of tenancy, payment terms, deposit amount, responsibilities of the tenant and landlord, and any other important clauses. Make sure to include the exact start and end dates of the tenancy.

Step 2: Get a copy of the tenancy agreement

One copy of the tenancy agreement is required for stamping, and it should be signed by both the tenant and the landlord. Make a photocopy of the agreement and keep the original in a safe place.

Step 3: Obtain a Form 1A

The Form 1A is available for purchase at any LHDN (Lembaga Hasil Dalam Negeri) branch or through their website. The form costs RM10.

Step 4: Fill up Form 1A

Fill up the Form 1A with the required details, including the name and address of the tenant and landlord, the rental amount, and the length of tenancy.

Step 5: Calculate the stamp duty

The stamp duty for tenancy agreements in Malaysia is calculated according to the rental amount and length of tenancy. You can use the stamp duty calculator on the LHDN website for an accurate calculation.

Step 6: Pay the stamp duty

Make the necessary payment for the stamp duty at any LHDN branch or through their website.

Step 7: Submit the Form 1A and tenancy agreement

Submit the Form 1A and the photocopy of the tenancy agreement to any LHDN branch within 30 days of the tenancy start date. You will receive a stamped copy of the tenancy agreement as proof of payment.

In conclusion, tenancy agreement stamping is a crucial step in renting property in Malaysia, and failure to comply can lead to legal consequences. Follow these simple steps to ensure a smooth and legal rental experience.