Stamp Duty and Administration Fees for Tenancy Agreements in Malaysia (2026)
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A written tenancy or lease agreement in Malaysia is generally subject to stamp duty under Item 49 of the First Schedule to the Stamp Act 1949. For agreements executed in 2026, the duty is charged on every RM250, or part of RM250, of annual or average annual rent and other annual consideration, at a rate of RM1, RM3, RM5 or RM7 depending on the term.
The old formula that deducted RM2,400 from annual rent should no longer be used. The filing process has also changed: from 1 January 2026, tenancy and lease instruments fall under Phase 1 of the Stamp Duty Self-Assessment System and are submitted through e-Duti Setem in MyTax.
An administration fee is different. It is a private processing charge imposed by a landlord, agency, property manager or document provider. It is not collected by LHDN, and Malaysia does not prescribe one universal administration-fee rate for residential tenancy agreements.
Tenancy agreement costs at a glance
| Cost | What it covers | Is it compulsory? | Statutory payer or usual arrangement |
|---|---|---|---|
| Stamp duty on the principal agreement | Government duty on the tenancy or lease instrument | Yes, where the instrument is chargeable | Tenant or lessee is legally liable |
| Duty on a related instrument or copy | Stamping another related lease instrument or copy where applicable | Depends on the instrument required | Landlord or lessor is legally liable for the copy |
| Administration fee | Preparing, printing, coordinating or submitting tenancy paperwork | No statutory nationwide fee | Negotiated between the parties |
| Solicitor's legal fee | A lawyer drafting, reviewing and completing the agreement | Only when a solicitor is engaged | Agreed between the parties |
| Advance rent and deposits | Advance rent, security deposit and utility deposit | Contractual rather than statutory | Usually paid by the tenant |
Key distinction: Stamp duty is a government charge. Administration fees, legal fees, deposits and advance rent are separate costs and are not added to annual rent when calculating Item 49 duty.
What is stamp duty on a tenancy agreement?
Stamp duty is imposed on the written instrument rather than on the act of renting a property itself. LHDN's June 2026 Item 49 guideline defines a tenancy agreement as an agreement with a term of three years or less. An agreement exceeding three years is treated as a lease and may also need to be completed with Form 15A and registered with the relevant land office under the National Land Code.
The duty treatment depends on the agreement's legal substance. LHDN may consider:
- The execution date and tenancy commencement date
- The length of the tenancy or lease
- Annual or average annual rent
- Service charges, furniture hire or other recurring consideration
- Any one-off fine or premium paid to obtain the lease
- Related instruments submitted with the principal agreement
Stamping does not replace proper drafting. The agreement should still state the property, parties, rent, tenancy period, deposits, repair obligations, termination terms and inventory clearly.
Is an unstamped tenancy agreement invalid?
An unstamped agreement is not automatically void. However, section 52 of the Stamp Act 1949 generally prevents a chargeable instrument from being admitted as evidence, acted upon, registered or authenticated unless it is duly stamped.
The instrument can generally be admitted after the required duty and any applicable penalty have been paid. The practical risk is therefore delayed enforcement and additional cost, rather than the tenancy never having existed.
Current tenancy and lease stamp duty rates
The rate is selected by the term of the tenancy or lease and applied to each RM250, or part of RM250, of annual or average annual rent and other annual consideration.
| Tenancy or lease term | Duty for every RM250 or part thereof |
|---|---|
| One year or less | RM1 |
| More than one year and up to three years | RM3 |
| More than three years and up to five years | RM5 |
| More than five years | RM7 |
Current tenancy and lease stamp duty rates
These are the current Item 49(a) rates for agreements executed in 2026. Do not use older guides that:
- Deduct RM2,400 from annual rent
- Apply the previous RM1, RM2 and RM4 rate structure
- Calculate duty on total rent for the entire contract period
- Round a partial RM250 unit down
If annual rent is not an exact multiple of RM250, the fraction is rounded up to the next complete unit.
What if the tenancy is shorter than one year?
LHDN's 2026 stamp-duty self-assessment Q&A confirms that rent for a tenancy shorter than 12 months must first be annualised.
For example, a six-month tenancy at RM2,000 per month has actual rent of RM12,000, but annualised rent of RM24,000 for stamp-duty purposes.
Stamp duty formula
Annual rent = Monthly rent × 12
Chargeable units = Annual rent ÷ RM250
Round any fraction up to the next whole unit
Principal stamp duty = Chargeable units × rate for the tenancy or lease term
For a tenancy shorter than 12 months:
Annualised rent =
Total rent for the short tenancy ÷ number of tenancy months × 12
Stamp duty formula
Important adjustments
The basic formula works for a fixed monthly rent. The calculation may need adjustment where the agreement includes:
- Rent that changes during the term
- A separate recurring service charge
- Furniture or equipment hire
- A turnover-based rental component
- A one-off fine or premium
- Another form of annual consideration
A one-off fine or premium can be chargeable separately under Item 49(b). Where an agreement includes both ordinary rent and a premium, the total duty may combine the duty arising under Item 49(a) and Item 49(b).
Worked examples using the current rates
Example 1: RM1,500 monthly rent for one year
Annual rent = RM1,500 × 12
= RM18,000
Chargeable units = RM18,000 ÷ RM250
= 72
Rate for one year or less = RM1
Principal stamp duty = 72 × RM1
= RM72
Example 2: RM2,500 monthly rent for two years
Annual rent = RM2,500 × 12
= RM30,000
Chargeable units = RM30,000 ÷ RM250
= 120
Rate for more than one year and up to three years = RM3
Principal stamp duty = 120 × RM3
= RM360
The RM360 is not multiplied by two. The term selects the applicable rate, while the duty calculation uses annual or average annual rent.
Example 3: RM2,000 monthly rent for six months
Actual six-month rent = RM2,000 × 6
= RM12,000
Annualised rent = RM12,000 ÷ 6 × 12
= RM24,000
Chargeable units = RM24,000 ÷ RM250
= 96
Rate for one year or less = RM1
Principal stamp duty = 96 × RM1
= RM96
Example 4: RM4,000 monthly rent for four years
Annual rent = RM4,000 × 12
= RM48,000
Chargeable units = RM48,000 ÷ RM250
= 192
Rate for more than three years and up to five years = RM5
Principal stamp duty = 192 × RM5
= RM960
Comparison table
| Monthly rent | Term | Annual or annualised rent | Principal duty |
|---|---|---|---|
| RM1,500 | 1 year | RM18,000 | RM72 |
| RM2,500 | 2 years | RM30,000 | RM360 |
| RM2,000 | 6 months | RM24,000 | RM96 |
| RM4,000 | 4 years | RM48,000 | RM960 |
These examples assume fixed base rent and no premium, turnover rent or additional recurring consideration.
Is there another RM10 charge for the landlord's copy?
LHDN's Item 49 guideline provides a fixed RM10 duty for certain related lease instruments where the principal lease agreement has already been duly stamped. A copy or other related instrument may therefore attract RM10, depending on its legal form and the category selected in e-Duti Setem.
Treat RM10 as an additional document charge where applicable, rather than automatically adding it to every tenancy calculation.
Who pays tenancy agreement stamp duty?
Under the Third Schedule to the Stamp Act 1949:
- The tenant or lessee is legally responsible for duty on the principal tenancy or lease agreement.
- The landlord or lessor is legally responsible for the copy of the instrument.
In practice, an estate agent, lawyer, landlord or tenant may submit and pay the duty on behalf of the liable party. The tenancy agreement can also state who advances each payment and whether reimbursement is required.
An invoice should separate:
- Government stamp duty
- Administration or processing fee
- Solicitor's legal fee
- Printing, courier or other disbursements
- Applicable tax
Avoid accepting one unexplained line item labelled "agreement fee".
What is the administration fee for a tenancy agreement?
An administration fee is a private service charge. It may cover work such as:
- Preparing an agreement from a template
- Coordinating signatures
- Printing or binding documents
- Preparing an inventory list
- Uploading documents for stamping
- Following up with the parties
- Courier or document-handling work
There is no universal statutory administration-fee schedule or nationwide cap for residential tenancy agreements. The amount depends on the provider's quotation and the services included.
Some property portals publish RM100 to RM300 as a market convention based on monthly rent. These figures should not be presented as LHDN rates, legal limits or compulsory charges.
What to ask before paying an administration fee
Ask for an itemised quotation that answers:
- Who is charging the fee?
- What work is included?
- Is agreement drafting included?
- Is stamping submission included?
- Are printing, inventory preparation and courier charges separate?
- Is applicable tax included?
- Is the fee refundable if the tenancy does not proceed?
- Is a similar fee being charged to the other party?
- Will an invoice and payment receipt be issued?
Government duty versus private tenancy fees
Legal fees for preparing a tenancy agreement
A solicitor's fee is separate from an agency or landlord administration fee. The Solicitors' Remuneration Order 2023, effective from 15 July 2023, sets the following scale for a tenancy involving immovable property:
| Monthly rent | Solicitor's scale fee for a tenancy |
|---|---|
| RM10,000 or less | 30% of monthly rent, subject to a minimum of RM500 |
| More than RM10,000 | At least 15% and no more than 25% of monthly rent |
The same order sets a separate, higher scale for a lease:
| Monthly rent | Solicitor's scale fee for a lease |
|---|---|
| RM10,000 or less | 60% of monthly rent, subject to a minimum of RM1,000 |
| More than RM10,000 | At least 30% and no more than 50% of monthly rent |
Other points from the order include:
- A solicitor acts only for one side: the landlord or tenant.
- Service charges, furniture hire and other consideration stated in the agreement are treated as rent for calculating the scale fee.
- Where rent varies and can be determined when the agreement is signed, the fee is based on the highest rent payable.
- Normal disbursements and applicable tax may be billed separately.
- Renewals on substantially the same terms may qualify for a reduced solicitor fee in circumstances specified by the order.
A self-drafted or agency template may avoid a solicitor's drafting fee, but both parties should still review whether the document properly covers deposits, repairs, access, early termination, subletting, renewal and dispute handling.
Total upfront cost of renting a home in Malaysia
Stamp duty is usually a small part of the total move-in amount. The largest cash outlay normally comes from rent and deposits.
A common market arrangement is:
- One month of advance rent
- Two months of security deposit
- Half a month of utility deposit
This "2 + 1 + 0.5" structure is a market convention, not a fixed legal requirement. The signed agreement determines the actual amount and refund conditions.
Example: RM2,000 monthly rent for a two-year tenancy
| Item | Illustrative amount |
|---|---|
| One month advance rent | RM2,000 |
| Two months security deposit | RM4,000 |
| Half-month utility deposit | RM1,000 |
| Principal stamp duty | RM288 |
| Total before any related-instrument, admin or legal fee | RM7,288 |
Stamp-duty calculation:
Annual rent = RM2,000 × 12
= RM24,000
Chargeable units = RM24,000 ÷ RM250
= 96
Two-year rate = RM3
Principal stamp duty = 96 × RM3
= RM288
A related instrument may incur another RM10 where the fixed-duty treatment applies. Any administration or legal fee should be added separately based on the invoice.
How to stamp a tenancy agreement through MyTax in 2026
From 1 January 2026, tenancy and lease instruments are included in Phase 1 of LHDN's Stamp Duty Self-Assessment System. The previous standalone STAMPS access ended after 31 December 2025, and users now enter e-Duti Setem through MyTax.
MyTax tenancy stamping timeline
Step 1: Finalise and execute the agreement
Check that the agreement states:
- Full names and identification details
- Property address
- Monthly rent and other consideration
- Start and end dates
- Deposit amounts
- Renewal and termination terms
- Number of copies or related instruments
- Signatures of the relevant parties
Step 2: Confirm the submitter has a TIN
The duty payer or appointed agent needs a Tax Identification Number and an activated MyTax account.
Step 3: Log in to MyTax
Access e-Duti Setem through:
MyTax → Perkhidmatan ezHASiL → Duti Setem → e-Duti Setem
Step 4: Submit the Stamp Duty Return Form and agreement
Select the tenancy or lease category shown in the system. Enter the parties, property, rent, tenancy term and other consideration accurately, then upload a complete copy of the executed agreement and relevant schedules.
Step 5: Self-assess the duty
Use the current Item 49 rates and ensure the correct annual or average annual rent is declared. Where the agreement is unusual, contains a premium or includes variable consideration, seek professional advice or clarification from LHDN rather than forcing it into a basic residential-rent calculation.
Step 6: Pay through e-Duti Setem
Pay the duty through the payment channel shown in MyTax and retain the confirmation.
Step 7: Attach the stamp certificate
Download the generated stamp certificate and keep it together with the final executed agreement.
Step 8: Retain the records for seven years
Under LHDN's STSDS guidance, the payer or appointed agent must retain the instrument and all related records for seven years from the date the duty is paid.
Stamping deadline and late penalties
| Situation | Deadline or penalty |
|---|---|
| Agreement executed in Malaysia | Stamp within 30 days from execution |
| Agreement executed outside Malaysia | Stamp within 30 days after it is first received in Malaysia |
| Stamped within three months after the deadline | RM50 or 10% of deficient duty, whichever is higher |
| Stamped more than three months after the deadline | RM100 or 20% of deficient duty, whichever is higher |
These penalty rates are stated in LHDN's stamp-duty penalty guidance, updated on 13 May 2026.
The 30-day clock runs from execution, not the move-in date. Waiting until the tenancy starts does not extend the deadline.
Malaysia's 2026 Special Voluntary Disclosure Programme for earlier unstamped instruments ended on 30 June 2026. Agreements submitted after that window should be assessed under the ordinary deadline and penalty rules unless another specific relief applies.
Common stamp-duty mistakes
1. Deducting RM2,400 from annual rent
The old annual-rent exemption is no longer part of the current Item 49(a) calculation. Use the full annual or average annual rent.
2. Using the old RM1, RM2 and RM4 rates
The current rate table is RM1, RM3, RM5 and RM7.
3. Multiplying duty by the number of years
The term determines the rate. Duty is calculated on annual or average annual rent, not total rent across the entire contract.
4. Failing to annualise a short tenancy
Rent for an agreement shorter than 12 months must first be converted into a 12-month equivalent.
5. Rounding RM250 units down
Any fractional part of RM250 is treated as a complete unit.
6. Calling an administration fee "stamp duty"
Stamp duty should be separately identified from any agency, landlord or document-preparation fee.
7. Ignoring additional consideration
Recurring service charges, furniture hire, turnover rent or a premium may change the assessment.
8. Using the old standalone STAMPS workflow
Access e-Duti Setem through MyTax in 2026.
9. Missing the 30-day deadline
The deadline runs from execution, even where the tenancy starts later.
10. Saying an unstamped agreement is automatically void
The main statutory consequence under section 52 is that the instrument cannot generally be used as evidence or acted upon until it is duly stamped.
Tax treatment for landlords
Under LHDN's Public Ruling No. 12/2018 on income from letting real property, costs incurred to obtain the first tenant are generally initial expenses and are not deductible against rental income. Examples include:
- Advertising costs
- Legal fees to prepare the first rental agreement
- Stamp duty
- Property-agent commission
Expenses incurred to renew a tenancy or replace a tenant may be deductible where they meet the applicable income-tax rules. The treatment also depends on whether the letting activity is assessed as a business source or non-business rental income.
A private residential tenant does not normally receive personal income-tax relief for tenancy stamp duty or an administration fee. A business tenant should obtain tax advice on whether the cost is deductible or capital in nature.
Checklist before signing and paying
- The names, identification details and property address are correct.
- Monthly rent and all additional consideration are stated clearly.
- The tenancy term and renewal option are unambiguous.
- Deposit amounts and refund terms are documented.
- Stamp duty is calculated using RM1, RM3, RM5 or RM7 per RM250.
- No RM2,400 deduction has been used.
- A tenancy shorter than one year has been annualised.
- Administration and legal fees are separately itemised.
- The party responsible for each payment is identified.
- The agreement is submitted within 30 days of execution.
- The stamp certificate is attached to the agreement.
- Records are retained for seven years from the duty-payment date.
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Frequently asked questions
How much is tenancy agreement stamp duty in Malaysia?
It ranges from RM1 to RM7 for every RM250 or part thereof of annual or average annual rent, depending on the agreement's term.
Is the first RM2,400 of annual rent still exempt?
No. A 2026 agreement should use the full annual or average annual rent when applying Item 49(a).
Who pays the stamp duty?
The tenant or lessee is legally responsible for the principal agreement. The landlord or lessor is responsible for the copy of the instrument.
Is an administration fee compulsory?
No statutory nationwide administration fee applies. It is a private charge that should be disclosed and itemised before the parties sign.
Is there a maximum administration fee?
There is no universal legal cap for a general tenancy administration fee. This is different from a solicitor's fee, which is governed by the Solicitors' Remuneration Order 2023.
How much is the lawyer's fee for a tenancy agreement?
For monthly rent of RM10,000 or less, the tenancy scale is 30% of monthly rent, subject to a minimum of RM500. For monthly rent above RM10,000, the fee is between 15% and 25% of monthly rent.
Can I stamp a tenancy agreement myself?
Yes. An individual with a TIN and activated MyTax access can use e-Duti Setem, subject to the current system requirements.
How long do I have to stamp the agreement?
An instrument executed in Malaysia must generally be stamped within 30 days of execution.
What is the late-stamping penalty?
Within three months after the deadline, it is RM50 or 10% of deficient duty, whichever is higher. After three months, it is RM100 or 20%, whichever is higher.
Is stamp duty multiplied by the number of tenancy years?
No. The tenancy length determines the rate, but the calculation uses annual or average annual rent.
How is duty calculated for a six-month tenancy?
Annualise the rent to 12 months, divide by RM250, round any fraction up, and multiply by the one-year-or-less rate.
Are security and utility deposits included in annual rent?
Ordinary refundable deposits are separate from rent. However, a non-refundable payment, premium or other consideration may require separate assessment based on the agreement's wording.
Is an unstamped tenancy agreement invalid?
Not automatically. It generally cannot be admitted as evidence or acted upon until the applicable duty and penalty have been paid.
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