Stamp duty is a tax that is levied on certain legal documents, including tenancy agreements in Malaysia. It is a one-time payment that is made by the tenant or the landlord, depending on the terms of the agreement. The amount of stamp duty payable on a tenancy agreement is determined by a formula that takes into account several factors.
The formula for calculating stamp duty on a tenancy agreement in Malaysia is as follows:
Stamp duty = [Rental amount / RM 250] x RM 1
Let us break down the formula to understand how it works.
First, we need to determine the rental amount that is stated in the tenancy agreement. This is the amount of rent that the tenant is required to pay the landlord for the use of the property. Let us assume that the rental amount is RM 1,500 per month.
Next, we divide the rental amount by RM 250. This gives us the number of units that the rental amount falls into. In this case, the rental amount falls into six units (RM 1,500 divided by RM 250).
Finally, we multiply the number of units by RM 1, which is the rate of stamp duty payable on each unit. In this case, the stamp duty payable on the tenancy agreement would be RM 6 (six units multiplied by RM 1).
Therefore, the stamp duty payable on a tenancy agreement with a monthly rental amount of RM 1,500 would be RM 6.
It is important to note that stamp duty rates vary depending on the state in which the tenancy agreement is executed. For example, in Selangor, the stamp duty rate for tenancy agreements is RM 1 for every RM 1,000 of the rental amount, whereas in Kuala Lumpur, the rate is RM 1 for every RM 250 of the rental amount.
In conclusion, calculating stamp duty on a tenancy agreement in Malaysia is a straightforward process that is determined by a formula based on the rental amount. As a professional, it is important to ensure that any articles related to stamp duty and tenancy agreements in Malaysia contain accurate information to provide value to readers.