Stamp Duty on Tenancy Agreement Malaysia: How Much, Who Pays, and How to Do It

Stamp duty on a Malaysian tenancy agreement is a government tax you pay to make the contract legally enforceable in court. The cost depends on your monthly rent and how long the tenancy lasts, and since 1 January 2026 you pay it entirely online through LHDN’s MyTax portal.

This guide covers the current rates, the exact formula, who bears the cost, deadlines, penalties, and a step-by-step walkthrough of online stamping.

Why you need a stamped tenancy agreement

An unstamped tenancy agreement is not admissible as evidence in Malaysian courts. If a dispute arises over rent arrears, deposit deductions, or early termination, a judge can refuse to hear your case if the agreement lacks a valid stamp. Stamping also creates an official record with LHDN for both the landlord’s rental income and the tenant’s expense claims.

The stamp duty formula

Stamp duty is charged per RM250 of annual rent (or any fraction of RM250), multiplied by a rate that rises with the length of the tenancy. The rate tiers are set under the Stamp Act 1949 (Act 378).

Rate table

Tenancy duration	Rate per RM250 (or part thereof) of annual rent	Minimum duty
Up to 1 year	RM1	RM10
More than 1 year, up to 3 years	RM2	RM10
More than 3 years, up to 5 years	RM3	RM10
More than 5 years	RM4	RM10

Important change from 1 January 2025: LHDN removed the RM2,400 annual rent exemption. Previously the first RM2,400 of annual rent was excluded from the calculation. That exemption no longer applies. The full annual rent is now chargeable (LHDN, 2025).

How to calculate

Multiply your monthly rent by 12 to get the annual rent.
Divide the annual rent by RM250.
Round up to the nearest whole number (any fraction counts as a full unit).
Multiply by the applicable rate for your tenancy duration.
The result is your stamp duty. Apply the RM10 minimum if the figure is lower.

Worked example

A tenant signs a 2-year agreement at RM1,800 per month.

Annual rent: RM1,800 x 12 = RM21,600
Units of RM250: RM21,600 / RM250 = 86.4, rounded up to 87
Rate for 2-year tenancy: RM2 per unit
Stamp duty = 87 x RM2 = RM174

A second copy of the same agreement (for the landlord’s records) costs a flat RM10, regardless of the rent or duration.

Who is legally responsible for paying?

Under the Third Schedule of the Stamp Act 1949, the tenant is the party legally liable to pay stamp duty on a tenancy agreement. The original stamped copy is the tenant’s document.

If a duplicate copy is required, the landlord is responsible for paying the RM10 flat fee on that copy.

In practice, many landlords and tenants split the cost by mutual agreement, or landlords absorb it to attract tenants. Whatever arrangement you reach, put it in writing inside the tenancy agreement itself to avoid disputes later.

From 2026, both parties must provide their Tax Identification Number (TIN) when filing via e-Duti Setem, so LHDN can match the rental income to the landlord and the rental expense to the tenant.

Deadline and penalties for late stamping

You must stamp the tenancy agreement within 30 days of the date it is signed.

If you miss the deadline, penalties apply under the Stamp Act 1949:

When you stamp	Penalty
Within 3 months after the 30-day deadline	RM50 or 10% of the unpaid duty, whichever is higher
More than 3 months after the 30-day deadline	RM100 or 20% of the unpaid duty, whichever is higher

On a RM174 duty, a penalty of 20% would add RM34.80. More than the duty itself for a low-rent agreement. Stamp early.

How to stamp online via e-Duti Setem (2026)

The old STAMPS portal was decommissioned on 31 December 2025. From 1 January 2026, all tenancy agreement stamping uses the Stamp Duty Self-Assessment System (SDSAS) inside LHDN’s MyTax portal. You calculate the duty yourself; LHDN no longer does the assessment for you.

What you need before starting

MyDigital ID or your LHDN registered account credentials
The signed tenancy agreement (PDF)
Your TIN and the landlord’s TIN
Property address and postcode
Monthly rent amount and tenancy start/end dates
FPX-enabled bank account or debit/credit card for payment

Step-by-step

Go to mytax.hasil.gov.my and log in.
From the main menu, select Duti Setem, then Perjanjian Sewa (Tenancy Agreement).
Fill in the property details: address, postcode, state.
Enter the tenancy details: start date, end date, monthly rent.
Enter both parties’ TIN numbers.
Upload the signed tenancy agreement PDF.
The system calculates the stamp duty automatically based on your inputs.
Review the amount and proceed to payment via FPX or debit/credit card.
Download your e-stamp certificate immediately after payment. Save a copy for both parties. The e-stamp certificate is legally equivalent to a physical stamp and is admissible in court.

The entire process takes roughly 10 to 15 minutes if you have all documents ready.

Can you still stamp at a physical LHDN counter?

Yes. LHDN Stamp Duty counters at state revenue offices still accept walk-in submissions. You bring the physical agreement, fill in a Stamp Duty Assessment form, and pay by cheque or cash. The digital route is faster and available 24 hours, so the physical option is mainly useful if you are uncomfortable with online banking or have a complex document query.

Common questions about stamping scenarios

Renewal agreements: A renewal tenancy is treated as a new agreement. Calculate stamp duty from scratch based on the new rent and new duration. You cannot use the original stamp for a renewed term.

Verbal tenancy or no written agreement: No written agreement means no stamping is required, but it also means you have almost no legal protection. Courts cannot enforce verbal rental terms. Always use a written agreement.

Commercial properties: The same stamp duty rates and formula apply to commercial tenancy agreements in Malaysia. There is no separate rate for shop lots or office space.

Furnished vs unfurnished: Stamp duty is calculated on the base rent only. If your agreement separately lists a furniture rental component, check with your lawyer whether it needs to be included. Many standard agreements bundle everything into one rent figure.

Key takeaways

Stamp duty on a tenancy agreement is calculated per RM250 of annual rent, at rates of RM1 to RM4 depending on tenancy length.
The RM2,400 annual rent exemption was removed from 1 January 2025. Full annual rent is now chargeable.
The tenant pays duty on the original copy. The landlord pays RM10 for any duplicate.
Stamping must happen within 30 days of signing. Late fees can reach 20% of the unpaid duty.
From 1 January 2026, all stamping is done online via e-Duti Setem at mytax.hasil.gov.my. Both parties need a TIN.
The e-stamp certificate downloaded after payment is fully valid in court.

Frequently asked questions

How much is stamp duty for a RM1,500 per month, 1-year tenancy? Annual rent is RM18,000. Divide by RM250: 72 units exactly. At RM1 per unit for a 1-year term: RM72 stamp duty.

Do I need a lawyer to stamp my tenancy agreement? No. You can stamp it yourself via the e-Duti Setem portal at mytax.hasil.gov.my without engaging a lawyer. A lawyer drafts the agreement and may handle stamping as part of their service, but it is not legally required for stamping.

What happens if I rent informally without a stamped agreement? An unstamped agreement cannot be used as evidence in court. If your landlord refuses to return your deposit or evicts you without notice, you have very limited legal recourse. Stamping costs a few hundred ringgit at most; the protection it provides is worth far more.

Can I stamp after the tenancy has already started? Yes, but you should do so immediately. Stamping is valid even if done after the tenancy start date, as long as you pay the applicable late-stamping penalty if the 30-day window has passed.

Is stamp duty the same as the tenancy agreement legal fee? No. Stamp duty is a government tax paid to LHDN. Legal fees are paid to your lawyer for drafting and reviewing the agreement. They are separate costs. For agreements handled by a lawyer, the legal fee is typically around RM150 to RM300 for a standard residential tenancy.

For more on your rights and obligations as a tenant or landlord in Malaysia, read our guide on renting a property in Malaysia. If you are buying instead of renting, see our breakdown of stamp duty on property purchases in Malaysia.

Educational content only, not financial advice. Verify current figures with official sources.