Stamp Agreement in Malaysia: What You Need to Know
When it comes to legal documents in Malaysia, stamping or the process of imprinting a stamp on a document plays a crucial role. The objective of stamping is to legalize a document and make it admissible as evidence in court. Hence, stamping is mandatory for the majority of legal documents in Malaysia.
But, what is a Stamp Agreement?
A Stamp Agreement, also known as a Tenancy Agreement, is a legal document that lays down the terms and conditions between a landlord and tenant for the rental of a property. A stamp duty is levied upon the agreement, which varies based on the monthly rent, the duration of the tenancy, and the type of property.
The stamp duty rates for a Stamp Agreement are as follows:
– For a tenancy period not exceeding three years, the stamp duty is calculated at the rate of RM1 for every RM100 of the annual rent.
– For a tenancy period exceeding three years, the stamp duty is calculated at the rate of RM2 for every RM100 of the annual rent.
Additionally, there may be additional charges depending on the type of property. For instance, for a lease of a commercial property, there may be an additional fee of 0.5% of the total rent payable.
Who is responsible for paying the Stamp Duty?
The Stamp Duty is usually paid by the tenant, but it can also be paid by the landlord or both parties. The Stamp Duty must be paid within 30 days of the Stamp Agreement`s execution. Failure to pay the Stamp Duty within the stipulated time frame would result in a penalty that increases with time.
What happens if the Stamp Duty is not paid?
If the Stamp Duty is not paid within 30 days of the Stamp Agreement`s execution, it becomes an offence. This could lead to a fine, imprisonment or both, as well as the possibility of the document not being admissible as evidence in court.
Therefore, it is essential to ensure that the Stamp Duty is paid on time and that all other necessary legal formalities are observed.
Conclusion:
Stamping is an essential process in the legal system of Malaysia, particularly when it comes to legal documents such as the Stamp Agreement. It is crucial to adhere to the Stamp Duty rates, deadlines, and other legal requirements to avoid complications and penalties. Thus, it is advisable to seek the help of a legal professional to ensure that all legal procedures are followed correctly, and your interests are protected.