The Reasons Behind Paying Stamp Duty When Renting a House in Malaysia 2023 🔎
Posted on
Renting a house should be an adventure, but navigating stamp duty can feel like exploring uncharted territory.
WHAT IS STAMP DUTY? 🤔
Stamp duty is a fee imposed by the Malaysian government on certain legal and financial transactions. It is commonly applicable in property-related matters, such as buying or selling a house or land, renting a property through a tenancy agreement, and transferring shares in a company.
When you rent a house, the Inland Revenue Board of Malaysia, also known as Lembaga Hasil Dalam Negeri (LHDN) is responsible for collecting stamp duty. You would need to submit the necessary documents and payment to the LHDN. It's important to ensure that you comply with the requirements and pay the stamp duty to the appropriate government authority to fulfill your legal obligations as a Malaysia tenant.
The amount you need to pay depends on how much you'll be paying in rent and how long the agreement will last. It's crucial to know this amount upfront so that you can budget accordingly. You should know your tenant rights now!
LATEST STAMP DUTY RATES IN MALAYSIA 2023
In Malaysia, the stamp duty rates for tenancy agreements vary based on the rental amount and duration. Usual yearly rates are RM1 for every RM250 above RM2400, RM 2 for 1 to 3 years, and RM4 for over 3 years.
1-year tenancy agreement:
Annual rental: RM1,700 x 12 = RM20,400
Taxable rental amount: RM20,400 - RM2,400 = RM18,000
Stamp duty: [(RM18,000 / RM250) x RM1] = RM72
For tenancy agreements between 1 to 3 years:
Stamp duty: [(RM18,000 / RM250) x RM2] = RM144
For tenancy agreements over 3 years:
Stamp duty: [(RM18,000 / RM250) x RM4] = RM288
KEEP YOURSELF UPDATED
You shall always check with the latest Stamp Duty Rates (not limited to property related) in Malaysia from here: LDHN Tax Brochure (Under Stamp Duty section - No. 7)
EXEMPTIONS AND REDUCTIONS
Guess what? Sometimes you can catch a lucky break with stamp duty. If you're renting from a family member or participating in certain government-linked housing schemes, you might be eligible for exemptions or reduced rates.
SEEK PROFESSIONAL HELPℹ️
Lawyers and real estate agents are the knights in shining armor who can guide you through stamp duty's twists and turns. They'll ensure you're following the rules and dodging any hidden traps.
Quack! BlueDuck is here to help make your renting journey even more convenient with our Zero Deposit Program for renters in Malaysia. Say goodbye to hefty deposits and embrace a stress-free rental experience!
Learn more on www.blueduck.my today!