Tenancy Stamp Duty & Notice Malaysia (2025)

Orientation, not legal advice. Stamp duty follows the Stamp Act 1949 as amended. Secondary blogs still quote pre-2025 rates — verify against LHDN / current First Schedule text.

From 1 Jan 2025 Finance Act 2024 replaced Item 49(a); RM 2,400 deduction repealed.
Rates RM 1 / 3 / 5 / 7 per RM 250 of average annual rent by term band.
Deposits are not part of the chargeable rent calculation.
Notice = what your TA says; there is no single national statutory period.

What changed in 2025

The Finance Act 2024 (Act 862) substituted Item 49(a) of the First Schedule to the Stamp Act 1949 with effect from 1 January 2025. Two practical shifts:

Duty is charged on the full average annual rent — the old RM 2,400 annual deduction is gone.
Rates rose and a fourth band was added: the old RM 1 / 2 / 4 scale became RM 1 / 3 / 5 / 7.

Current Item 49(a) scale

Duty for every RM 250 or part of average rent and other annual considerations, by lease term:

Lease term	Duty per RM 250	Boundary tip
Not exceeding 1 year	RM 1	Exactly 12 months stays here
Exceeding 1, not exceeding 3 years	RM 3	13 months jumps to this band
Exceeding 3, not exceeding 5 years	RM 5	Exactly 36 months still mid band
Exceeding 5 years, or indefinite	RM 7	Month-to-month with no end date → top band

Leases over three years may also need National Land Code registration (Form 15A) at the land office — separate from residential stamping practice. LHDN guidelines also cover premiums (49(b)) and counterparts (often fixed RM 10 when the principal is duly stamped).

Worked example

RM 1,500/month for a 2-year tenancy:

Average annual rent = RM 1,500 × 12 = RM 18,000
Units of RM 250 = 18,000 ÷ 250 = 72
Band = >1–3 years → RM 3 per unit → RM 216 duty on the principal

Under the old (pre-2025) math with the RM 2,400 deduction and lower rates, the same deal would have stamped cheaper — which is why outdated calculators mislead.

What counts / doesn’t

In: average annual rent and other annual considerations (including service / facility / car-park charges secured by the same instrument, where applicable). Out: refundable security and utility deposits — they are guarantees, not consideration for the lease.

Who pays & e-stamping

Under Rai & Co. management the tenant pays the TA including stamping (see Who pays what) — matching common residential practice that the tenant bears the principal and the landlord the counterpart. Instruments are typically stamped via LHDN’s stamp duty channels (including e-stamping where available) within the statutory window after execution. Unstamped agreements are harder to use as evidence and weaker in bank rental-income files.

Notice & early exit

Private residential tenancies do not share one national statutory notice period. The written agreement governs:

Fixed term — usually ends on the stated expiry unless renewed
Break / early termination clause — only if drafted; market forms often ask ~2 months’ written notice plus any agreed forfeiture
Diplomatic clause — common for expats; follows the TA’s wording
Non-renewal — follow the renewal/notice clause if you want vacant possession at expiry without surprise holdover

Deposit refunds at exit: Deposits & inventory.

What we handle

We prepare and stamp tenancies as part of letting, keep the trail bank-ready, and align notice dates with your portfolio calendar. Free review on WhatsApp if you want next renewals run this way.

Common questions

What are the tenancy stamp duty rates from 1 January 2025?

Under Item 49(a) of the First Schedule to the Stamp Act 1949 (as substituted by the Finance Act 2024), duty is RM1, RM3, RM5 or RM7 for every RM250 (or part) of average annual rent, depending on whether the term is ≤1 year, >1–3 years, >3–5 years, or >5 years / indefinite. The old RM2,400 annual deduction no longer applies.

Who pays stamp duty on a tenancy agreement?

Market practice in residential lets is that the tenant pays duty on the principal agreement (and the landlord often pays for the counterpart/copy). Confirm allocation in your tenancy agreement.

Is there a statutory notice period to end a tenancy in Malaysia?

For private residential tenancies, notice and early-exit rules are generally governed by the written agreement, not a single national statutory notice period. Fixed terms usually end on expiry unless renewed; break clauses (often ~2 months' notice in market forms) apply only if drafted.

Want this handled year-round? Book a free portfolio review on WhatsApp — landlords across Klang Valley, from RM 125/door/month.

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