19 Jul Tenancy Agreement Stamping

Tenancy Agreement Stamping: What You Need to Know

As a tenant or landlord in Malaysia, it is essential to understand the process of tenancy agreement stamping. This is because, under the law in Malaysia, all rental agreements that exceed twelve months must be stamped to be legally valid. Failure to do so can result in legal penalties and complications.

What is Tenancy Agreement Stamping?

Tenancy agreement stamping is the process of getting your rental agreement stamped by the Inland Revenue Board of Malaysia (IRBM). The stamping process involves paying a small fee, after which the IRBM will place a stamp on your agreement to signify that it has been legally validated.

Why is Tenancy Agreement Stamping Important?

As mentioned earlier, tenancy agreement stamping is a legal requirement in Malaysia for rental agreements that exceed twelve months. This means that if you fail to get your agreement stamped, it will not be legally valid. In the event of any conflict, dispute, or legal action, your agreement will not be admissible as evidence.

Furthermore, tenancy agreement stamping provides legal certainty and protection for both tenants and landlords. It ensures that both parties are aware of their rights and obligations under the agreement and provides a mechanism for resolving disputes in case they arise.

How to Stamp Your Tenancy Agreement

The process of stamping your tenancy agreement is relatively straightforward. You will need to:

1. Prepare your tenancy agreement: Your agreement should be in writing and contain all the necessary terms and conditions.

2. Pay the stamp duty: The amount of stamp duty payable depends on the duration of your agreement and the monthly rental. You can calculate the stamp duty using the online stamp duty calculator on the IRBM website.

3. Get your agreement stamped: You can get your agreement stamped at any IRBM branch or via their e-stamping system. You will need to provide the original copy of your agreement, along with proof of payment of the stamp duty.

4. Collect your stamped agreement: Once your agreement has been stamped, you will need to collect it from the IRBM branch or download it from their e-stamping system.

Conclusion

Tenancy agreement stamping is a critical process that ensures legal validity and protection for both tenants and landlords in Malaysia. As a tenant or landlord, it is essential to understand the stamping process and comply with the legal requirements to avoid any legal complications or penalties. Remember, a small investment in stamp duty can provide peace of mind and legal certainty throughout the tenancy period.