Stamp duty on leases and tenancy agreements

Payable by the lessee or licensee. Residential and commercial leases pay the same rate; the Act draws no county or urban/rural distinction for rent. An agreement for a lease is charged as if it were the lease (s.55(1)).

Added to the KES 20 for the first KES 2,000. Charged on the whole amount payable for the term, not on an annualised rent. Payable by the lessee.

The Act says 'not less than one year but not exceeding three years', and the band above says 'not exceeding one year', so a term of exactly one year fits both wordings. Payable by the lessee.

Charged on one year's rent (rate or average rate), not on total rent for the term. Example: KES 50,000 a month (KES 600,000 a year) on a 2-year lease = 600 x KES 10 = KES 6,000. Payable by the lessee.

Payable by the lessee. There is no further band above three years, such as 21 years.

This 2% of one year's rent is the highest rent-based lease rate in the Schedule. There is no 3% or 4% band and no band for leases over 21 years. A lease granted in perpetuity is charged as a conveyance on the value of the property instead (s.58).

Section 57 charges a premium 'as if it were a conveyance on sale'. For immovable property in a municipality, item 12A applies: KES 20 / 40 / 60 / 80 for consideration up to KES 500 / 1,000 / 1,500 / 2,000, then KES 40 per KES 1,000. Charged in addition to the rent-based duty.

Section 57 applies the general conveyance-on-sale rate (item 11): KES 10 / 20 / 30 / 40 up to KES 500 / 1,000 / 1,500 / 2,000, then KES 20 per KES 1,000. Charged in addition to the rent-based duty.

Once the agreement for lease has paid full duty, the formal lease pays only KES 5.

Charged on one year's (average) rent, from the first ringgit (no RM2,400 threshold since 1 Jan 2025). Applies to leases of immovable property: land, houses, shops, factories, offices, business space. The lessee pays (Third Schedule item 8(a)). The minimum duty is RM10 per instrument (separate row).

Before 1 Jan 2025 the rate was RM2. Example: RM2,000 a month (RM24,000 a year) on a 2-year tenancy = 96 x RM3 = RM288. The lessee pays.

Before 1 Jan 2025, all terms over 3 years paid RM4. Leases over 3 years must also be registered on Form 15A under the National Land Code s.221. Form 15A pays a fixed RM10 if the lease agreement is duly stamped (item 49(e)). The lessee pays.

The lessee pays.

Abolished from 1 Jan 2025: tenancies with annual rent of RM2,400 or less are now dutiable at the item 49(a) rates. The Bill's explanatory note says the amendment removes the RM2,400 threshold ('memotong nilai ambang dua ribu empat ratus ringgit') and that the rates also apply to instruments where rent is RM2,400 and below a year, effective 1 Jan 2025. Read from the Bill as tabled (D.R. 48/2024). The gazetted Act text was not reachable (lom.agc.gov.my timed out). LHDN's 30 Jun 2026 guideline shows no threshold.

Where the computed duty is under RM10, RM10 is charged. Cheques and contract notes are excluded. In force from 1 Jan 2025.

Under self-assessment (STSDS), duty must then be paid within 30 days of submitting the Stamp Duty Declaration Form (BNDS). An instrument signed outside Malaysia: 30 days after it is first received in Malaysia.

New penalty rates from 1 Jan 2025. LHDN's FAQ says no penalty applies for an incorrect BNDS in the first year of STSDS. That relief covers wrong declarations, not late stamping.

Rates from 1 Jan 2025.

Phase 1 (1 Jan 2026) covers Lease/Tenancy, Security and General Stamping; Phase 2 (1 Jan 2027) transfers of real property not involving a JPPH valuation; Phase 3 (1 Jan 2028) the rest. The payer files the BNDS and self-assesses through e-Stamp Duty (e-Duti Setem) via MyTax. The STAMPS portal was not replaced: LHDN's FAQ says that from 1 Jan 2026 e-Stamp Duty is reached through MyTax or the e-Stamp Duty Portal at stamps.hasil.gov.my, logging in with a STAMPS ID. A TIN is needed for every party. Records must be kept 7 years.

The premium is charged at the conveyance-on-sale rates of item 32(a) (item 49(b)). Where there is both rent and a premium, both duties are payable (item 49(c)). A lease whose consideration is a share of land produce pays a fixed RM10 (item 49(d)).

AAR is the higher of the average annual contractual rent and the annualised market rent. It includes service, maintenance, furniture/fittings and advertising charges, but not GST.

Duty is rounded down to the nearest dollar, with a minimum of SGD 1. IRAS example: a 3-month lease with total rent SGD 10,000 pays SGD 40.

The duty base is capped at four years' rent. Rounded down to the nearest dollar, minimum SGD 1.