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You can stamp a tenancy agreement via the Internet, by post or in person at the Stamp Office of the Inland Revenue Department. Both the landlord and tenant are liable to pay stamp duty. Subject to individual arrangement, the stamp duty payment is usually shared between the landlord and the tenant.
Stamping of the Tenancy Document A tenancy agreement must be stamped within 30 days of execution. You can stamp a tenancy agreement via the Internet, by post or in person at the Stamp Office of the Inland Revenue Department. Both the landlord and tenant are liable to pay stamp duty.
Normally, there are two copies of tenancy agreement (one copy for landlord and another one for tenant ) and both of the copies have to be stamped in order to make it legal. You can get it done at Malaysia Inland Revenue Authority, also known as Lembaga Hasil Dalam Negeri Malaysia, LHDN Malaysia.
The Stamp Duty is paid to the Inland Revenue Authority of Singapore (IRAS). The Tenancy Agreement will only have legal binding power once the Stamp Duty has been paid and all the relevant stamps and seals are in place. The Stamp Duty on rental units also applies to extension of lease, or renewal of Tenancy Agreement.
Basically, the Stamp Duty for Tenancy Agreements spanning one year amounts to RM1 for every RM250 of the annual rent in excess of RM2,400. For two-year contracts, the stamp duty rate is RM2 for every RM250 of the annual rent in excess of RM2,400.
Since April 2016, landlords pay an extra three percentage points of stamp duty on each band, when they purchase a buy-to-let property. The rates for landlords (and anyone buying a second home) is 3% on the portion of the property up to £125,000, then 5%, 8%, 13% and 15% respectively for the price tiers.
Calculation of Stamp Duty The amount of stamp duty is $100 [i.e. $5,000 x 8 x 0.25/100]. Fixed rent A tenancy agreement with 2 copies was signed on 4 January 2010 for a term with duplicate of 2 years with monthly rental of $7,000. The amount of stamp duty is $425 Example 6 [i.e. $7,000 x 12 x 0.5/100 + $5 (for copy)].
The formula to calculate stamp duty on rental agreement is 0.25% x D, where D is (Monthly rental x No of months) + (Advance rent for the period/non-refundable deposit)+ (10% x Refundable deposit x No of years of the agreement).
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