When it comes to renting a property in Malaysia, one of the expenses that tenants need to take into account is the stamp duty for the tenancy agreement. But who should bear this cost– the landlord or the tenant?

First, let`s define what stamp duty is. It is a tax imposed by the government on legal documents, including tenancy agreements, to make them legally admissible in court. In Malaysia, the stamp duty rate for tenancy agreements is 0.5% of the total rental amount for the entire leasing period, or a maximum of RM 2,400.

Now, going back to the question of who should pay for the stamp duty, it is not clearly stated in the law. However, in practice, the norm is that the tenant is the one who shoulders this cost. This is because the tenancy agreement is a legally binding contract between the landlord and the tenant, and it mainly benefits the tenant as it outlines their rights and responsibilities as well as the terms of the lease.

On the other hand, the landlord has other expenses to cover, such as property maintenance and mortgage payments. Hence, it is reasonable for the tenant to pay for the stamp duty, especially since they are the ones who initiate the renting process.

However, it is not uncommon for landlords to offer to split the stamp duty cost with the tenant as a gesture of goodwill. This can be negotiated between the parties before signing the tenancy agreement.

In some cases, the landlord may agree to pay for the stamp duty, especially if the tenant is renewing the lease or if the property has been vacant for a long time and the landlord wants to attract tenants.

Ultimately, the decision on who should pay for the stamp duty for the tenancy agreement in Malaysia depends on the agreement reached between the landlord and the tenant. It is important to clarify this before signing the contract to avoid any confusion or disputes in the future.

In conclusion, while the norm is for the tenant to pay for the stamp duty, it is not set in stone and can be subject to negotiation between the parties involved. It is advisable for both the landlord and tenant to approach this matter openly and transparently to ensure a smooth and fair renting process.