Tenancy Agreement Lhdn Stamping 2020

Tenancy Agreement LHDN Stamping 2020: Everything You Need to Know

In Malaysia, it is mandatory to have your tenancy agreement stamped by the Inland Revenue Board of Malaysia (LHDN) for it to be legally binding. This process of stamping ensures that the agreement has been verified by the government and that the necessary taxes have been paid. If you are a landlord or a tenant, it is essential to understand the process of tenancy agreement LHDN stamping in 2020. Here is everything you need to know.

What is a Tenancy Agreement?

A tenancy agreement is a legal document that outlines the terms and conditions of a rental agreement between the landlord and the tenant. It highlights the rent amount, security deposit, tenancy period, and other pertinent details that both parties agree upon. It is essential to have a tenancy agreement in place to ensure that both parties are aware of their rights and responsibilities.

Why is LHDN Stamping of Tenancy Agreement Important?

LHDN stamping of tenancy agreement is essential because it validates the agreement`s contents and ensures that the necessary taxes have been paid. The LHDN stamp is recognized by Malaysian courts, and it is mandatory to have it stamped for the agreement to be legally binding. Additionally, having a stamped tenancy agreement ensures that both parties are aware of their commitments and responsibilities, which helps to minimize disputes.

How to Stamp Your Tenancy Agreement with LHDN In 2020?

The process of stamping your tenancy agreement with LHDN in 2020 is straightforward. Here are the steps to follow:

Step 1: Download the tenancy agreement form from the LHDN website.

Step 2: Fill in the required details such as the landlord and tenant`s names, rental amount, and tenancy period.

Step 3: Print and sign the agreement and attach a copy of the landlord`s identification document, such as an identity card or passport.

Step 4: Submit the form to the nearest LHDN office or post it to the LHDN headquarters in Kuala Lumpur.

Step 5: Pay the stamp duty fee, which is typically calculated as a percentage of the total rental amount. The stamp duty fee can be paid at any LHDN office or online via the LHDN e-payment portal.

Step 6: Wait for the LHDN stamp to be affixed to the agreement. This process usually takes a few hours or a maximum of one working day.

Once the stamp has been affixed to the agreement, it is legally binding and enforceable. The tenant and the landlord should keep a copy of the stamped agreement for future reference.

The Cost of LHDN Stamping of Tenancy Agreement in 2020.

The cost of LHDN stamping of tenancy agreement in 2020 varies depending on the rental amount and tenancy period. The rate of stamp duty applicable for tenancy agreement is as follows:

– For rental amount less than RM 2,500, stamp duty is RM 1

– For rental amount between RM 2,500 and RM 5,000, stamp duty is RM 2

– For rental amount above RM 5,000, stamp duty is RM 10

The stamp duty fee can be paid either at the LHDN office or online via the LHDN e-payment portal.

Conclusion

Tenancy agreement LHDN stamping is an essential process in Malaysia that needs to be followed by both landlords and tenants. It ensures that both parties are aware of their responsibilities and commitments and that the necessary taxes have been paid. By understanding the process of LHDN stamping of tenancy agreement in 2020, landlords and tenants can ensure that their agreements are legally binding and enforceable.