Malaysia Tenancy Stamp Duty 2026: Who Pays, Rates & Agent Fees Explained

Checked 22 October 2026. Stamp duty on a Malaysian residential tenancy agreement is a government charge, whereas an agent's agreement-preparation or processing fee is a separate private service charge. Under the Stamp Act's Third Schedule, the lessee is generally liable for duty on the main lease, while the lessor is associated with the counterpart. Who submits the document is a different question.

Many renters simply ask a property agent to arrange everything. That can be convenient, but a lump-sum quote should not hide how much is paid to LHDN and how much is charged for private services.

Malaysia tenancy stamp duty rates for 2026

Under Item 49 of the First Schedule to the Stamp Act 1949, ordinary tenancy duty is calculated for every RM250, or part of RM250, of annual or average annual rent. The rate depends on the total agreed tenancy term.

Basic formula: Round up (annual rent ÷ RM250) × applicable rate.

Do not apply an outdated formula that first subtracts RM2,400 from annual rent. For a lease shorter than 12 months, LHDN has clarified that the rental amount must first be annualised. Premium payments, facilities, services or unusual conditions may require a more detailed assessment, so the simplified examples below are not the final authority for every contract.

Sources: LHDN Stamp Duty Self-Assessment System; 2026 tenancy rate breakdown.

Worked examples: how much is the duty?

Assume an ordinary residential agreement with no lease premium or exceptional additional consideration. These are main-instrument stamp duty estimates only, excluding agent fees and late penalties.

A common mistake: Do not calculate a two-year lease by multiplying the one-year stamp duty by two. The duty rate itself changes for leases exceeding one year.

What if the tenancy lasts just six months? With monthly rent of RM2,000, the annualised rent is RM24,000; the simplified one-year-or-shorter rate produces RM96. The key is annualising first, not using only RM12,000.

Who pays: landlord or tenant?

Three separate roles are regularly confused.

1. Statutory liability: The Third Schedule, Section 33, identifies the lessee for the main lease/agreement and the lessor for the counterpart, subject to the nature and classification of the instrument.
2. Who submits the document: Either party or an appropriately authorised agent may handle online stamping. Submission does not by itself determine who bears every related charge.
3. What the parties agreed: Review the signed tenancy terms and any quotation for administration, drafting and legal services. Ask for an itemised breakdown before paying.

For the legislative text, see the Stamp Act 1949 published by LHDN. Complex or disputed agreements may need professional advice.

Why does an agent charge more than the stamp duty?

Agent administration and document-preparation fees are not the same as the official stamp duty, and there is no single nationwide LHDN agent-processing tariff covering every residential lease.

Imagine a one-year, RM1,500/month tenancy. The simplified government duty is RM72. If someone quotes RM200 total, ask what the other RM128 represents. This is an illustrative quotation, not a verified market fee. It could involve drafting, administration, a copy, or other services, depending on the actual quote.

Before handing over payment, request separate lines for government stamp duty, stamping service, agreement preparation, additional copies and any other fees. Also ask for the LHDN payment evidence and your stamped copy.

Can you stamp a tenancy agreement yourself through MyTax?

Yes. LHDN introduced the Stamp Duty Self-Assessment System (STSDS) in stages beginning 1 January 2026, with tenancy and lease instruments included in Phase 1.

The basic process is:

1. Prepare the executed agreement, rental amounts, term and parties' particulars.
2. Obtain or check the Tax Identification Number (TIN) required for the payer or authorised representative.
3. Access the relevant e-Duti Setem / STSDS service through the official MyTax portal.
4. Upload the agreement, complete the filing and self-assess the duty carefully.
5. Pay within the deadline and retain the stamped document and records. LHDN requires the records to be kept for seven years after payment.

You can appoint an agent instead, but the government amount and the fee for their work should remain transparent.

Source: LHDN official STSDS procedures.

When is the deadline, and what if you are late?

As a general rule, an instrument signed in Malaysia should be stamped within 30 days after execution. If it was signed outside Malaysia, the clock generally runs 30 days after it is received in Malaysia.

The official late-stamping penalties, effective from 1 January 2025, are:

• Within three months after the stamping deadline: RM50 or 10% of the deficient duty, whichever is higher.
• More than three months after the deadline: RM100 or 20% of the deficient duty, whichever is higher.

This can be a material extra expense even if the original duty was small. See LHDN's penalty page.

Frequently asked questions

Must I pay an agent to stamp the agreement?

No universal rule requires use of a paid agent for every tenancy. STSDS allows the payer or authorised representative to file; fees for additional agent services are a separate matter.

Is a two-year agreement simply two times the one-year duty?

No. The annual-rent basis stays, but the rate changes to RM3 per RM250 for terms over one year up to three years.

Can I deduct RM2,400 of annual rent?

Do not use old exemption formulas for a 2026 agreement. Verify current provisions and the resulting assessment.

Who should keep the stamped agreement?

Both parties should arrange for appropriate signed copies and documentation showing that the duty has been paid.

Is an unstamped agreement automatically worthless?

That is an oversimplification. Failure to stamp may create evidentiary problems, unpaid duty and penalties; specific disputes require proper legal advice.

What JomGuide recommends

Whether you are the landlord or the tenant, separate tax from service fees. First establish the official duty, then decide whether paying an agent for convenience and document preparation is worthwhile. An itemised quotation and stamped receipt give both parties a clearer record.

Last checked: 22 October 2026. Official reference: LHDN STSDS and late-payment rules. This is general information rather than advice on a particular tenancy dispute.