Tenancy Agreement Stamp Duty Calculator

When you rent out your unit to the other party, it is advisable to have a tenancy agreement (also known as ‘ perjanjian sewa’ in Bahasa Malaysia) to protect your and the other party’s rights. There are also some costs to be incurred for preparing the contract.

Before that, we will explain the importance of a perjanjian sewa before explaining the related tenancy agreement fee and the calculation.

Importance of Perjanjian Sewa

A tenancy agreement in Malaysia usually lists the terms and conditions for the arrangements including the rights of the parties, that is the landlord and the tenant.

The usual terms are the amount of monthly rental, rental deposit, and utility deposits. The other terms are whether any furniture is provided in the unit and the renewal/extension option.

In some cases, the landlord may require the tenant to get his permission for any renovation.

As to the question of ‘tenancy agreement 1+1 meaning’, it means there is a fixed period of 1-year rental and another year extension is optional.

When there is an expired tenancy agreement Malaysia and if the tenants continue to stay in the property after the expiry, the tenants will be regarded as trespassing into the landlords’ unit and legal action may be taken against them.

Costs For Perjanjian Sewa

The tenants may pay some fees for the contract which are:

1. Stamp duties Stamp duty in Malaysia (known as ‘ setem duti ’) is a charge imposed by the Inland Revenue Board, known as Lembaga Hasil Dalam Negeri (LHDN) for stamping documents that are chargeable with setem duti , which includes a perjanjian sewa . If there is an unstamped agreement or there is an insufficient stamp duty fee paid, it may cause further penalties from LHDN. The tenancy agreement stamp duty calculation Malaysia follows the law, that is Stamp Act 1949 and the calculation will be explained in the section below. After the amount of duties is assessed by the LHDN, the tenant will have to make the payment within 30 days. For the calculation of fees for your situation, you can use our tenancy agreement stamp duty online calculator above.
2. Legal fee Usually, a lawyer will prepare the contract for the parties and they will charge for their services. The computation will be explained in the section below.
3. Other charges Apart from setem duti , the tenant may still have to pay some other fees which include administration fees. This is a fee payable to the property estate agency that helps with the transaction. On the other hand, the landlord may need to pay some taxes for the income gained from the rental.

Calculation For Setem Duti and Legal Fees

Stamp Duty

The following tenancy agreement stamp duty table shows the calculation for the duties: