Rent Agreement Stamp Duty Malaysia 2026: Factory and Warehouse Tenancy Rates, e-Stamping and SST
Stamp duty on a Malaysian rent agreement is charged on one year's rent: RM3 per RM250 for a 1 to 3 year factory lease since the RM2,400 exemption ended in 2025. Worked examples at JPPH-registered Klang and Selangor rents, MyTax e-stamping steps, late penalties, 6% SST on rent and the industrial lease clauses that matter.
Key Takeaways
- Stamp duty on a rent agreement is charged on one year's rent, not the whole term: RM1 per RM250 of annual rent for terms up to 1 year, RM3 for over 1 to 3 years, RM5 for over 3 to 5 years and RM7 above 5 years. That is 0.4%, 1.2%, 2.0% or 2.8% of the annual rent.
- The RM2,400 exemption ended on 1 January 2025. Every ringgit of rent is now dutiable, the minimum duty is RM10, and each duplicate costs RM10.
- A 2-year tenancy at RM19,700 a month (the JPPH-registered median rent for detached factories in Klang and Port Klang) pays RM2,838, up from RM1,872 under the old scale.
- The tenant pays unless agreed otherwise, and the agreement must be stamped within 30 days on MyTax (e-Duti Setem) under self-assessment. Late stamping costs RM50 or 10% within 3 months, then RM100 or 20%.
- Service tax on factory and warehouse rent is effectively 6% from 1 January 2026, charged only by SST-registered landlords. Tenants with annual sales up to RM1.5 million can claim exemption through MyPMK.
Stamp duty on a factory or warehouse rent agreement (tenancy agreement) is charged on one year's rent under item 49(a) of the First Schedule to the Stamp Act 1949, as rewritten by the Finance Act 2024 from 1 January 2025: RM1 for every RM250 of annual rent for a term of up to 1 year, RM3 for over 1 to 3 years, RM5 for over 3 to 5 years and RM7 above 5 years, and the old RM2,400 exemption no longer applies. For example, a 2-year tenancy at RM20,000 a month (RM240,000 a year) pays RM2,880. The Stamp Act makes the tenant (lessee) liable for the duty, although the tenancy can shift the cost to the landlord, and since 1 January 2026 tenancies are stamped under LHDN's self-assessment system on MyTax (e-Duti Setem) within 30 days of signing.
To get the exact figure for your own rent, term and number of copies, use our tenancy agreement stamp duty calculator; it applies the same 2025 rates, the RM10 minimum and RM10 per duplicate. If the landlord is registered for SST, 6% service tax is added to the rent.
This guide covers the stamp duty, how to stamp online, what happens when you stamp late, the 6% rental tax and the clauses that matter in an industrial lease. For viewings, inspections and deposits, see our step-by-step guide to renting a factory in Malaysia. This is general information, not legal or tax advice; confirm your own case with a lawyer or tax adviser.
How much is stamp duty on a rent agreement in Malaysia in 2026?
Tenancies fall under item 49(a) of the First Schedule to the Stamp Act 1949. The Finance Act 2024 rewrote that item from 1 January 2025, raising the rates for terms above one year and removing the exemption for annual rent up to RM2,400 (section 27 of the Finance Act 2024, Act 862; see also The Sun's tax column). The same Act added section 36CB, which sets a RM10 minimum duty per instrument. The Finance Act 2025, in force from 1 January 2026, did not change these rates.
| Tenancy term | Duty per RM250 of annual rent | As % of annual rent | Rate before 2025 |
|---|---|---|---|
| Up to 1 year | RM1 | 0.4% | RM1 |
| Over 1 year, up to 3 years | RM3 | 1.2% | RM2 |
| Over 3 years, up to 5 years | RM5 | 2.0% | RM4 |
| Over 5 years | RM7 | 2.8% | RM4 |
| Minimum per agreement | RM10 | None | |
| Each duplicate copy | RM10 | RM10 |
The duty is based on one year's rent, so a 3-year tenancy does not pay three times. But the term band sets the rate for the whole amount: at the same rent, a 4-year term pays two-thirds more than a 3-year term.
Two details catch industrial tenants. First, item 49 charges duty on the "average rent and other considerations" for a year, so service charges or facility fees written into the lease as part of the consideration count towards the annual figure. Second, if the landlord also takes a premium (a lump sum sometimes called key money), items 49(b) and 49(c) charge the premium at the same rate as a conveyance, on top of the duty on the rent.
How to calculate stamp duty on a tenancy agreement
- Annual rent = monthly rent x 12. If rent steps up during the term, use the average annual rent.
- Divide by RM250 and round up. Any part of RM250 counts as a full unit.
- Multiply by RM1, RM3, RM5 or RM7 for the term.
- Add RM10 per duplicate, and pay at least RM10 in total.
Example with a step-up: a 3-year tenancy at RM20,000, RM21,000 and RM22,000 a month averages RM252,000 a year. 252,000 / 250 = 1,008 units x RM3 = RM3,024.
Where a letter of offer and a full tenancy agreement complete the same deal, LHDN's stamp duty guide says only the principal instrument pays full duty and the others pay RM10 each.
Stamp duty calculator table for factory and warehouse rents
| Monthly rent | Up to 1 year | Over 1 to 3 years | Over 3 to 5 years | Over 5 years |
|---|---|---|---|---|
| RM5,000 | RM240 | RM720 | RM1,200 | RM1,680 |
| RM10,000 | RM480 | RM1,440 | RM2,400 | RM3,360 |
| RM20,000 | RM960 | RM2,880 | RM4,800 | RM6,720 |
| RM30,000 | RM1,440 | RM4,320 | RM7,200 | RM10,080 |
| RM50,000 | RM2,400 | RM7,200 | RM12,000 | RM16,800 |
| RM100,000 | RM4,800 | RM14,400 | RM24,000 | RM33,600 |
Figures exclude RM10 per duplicate.
Worked examples: monthly rent, term and stamp duty at registered rents
The table uses JPPH-registered factory tenancies from our Klang and Port Klang transactions page (780 tenancies in the 24 months to August 2026, median rent RM1.43 psf a month, typical term 24 months) and the Selangor and Kuala Lumpur transactions page (2,487 tenancies, median rent RM1.54 psf a month, typical term 24 months). The duty column uses today's item 49(a) rates.
| Registered median (JPPH) | Monthly rent | Term | Annual rent | Stamp duty |
|---|---|---|---|---|
| Terrace factory, Klang & Port Klang (about 2,450 sq ft) | RM3,500 | 2 years | RM42,000 | RM504 |
| Stratified factory, Klang & Port Klang (about 1,670 sq ft) | RM4,000 | 2 years | RM48,000 | RM576 |
| Semi-detached factory, Klang & Port Klang (about 8,630 sq ft) | RM15,000 | 2 years | RM180,000 | RM2,160 |
| Detached factory, Klang & Port Klang (about 15,090 sq ft) | RM19,700 | 2 years | RM236,400 | RM2,838 |
| Terrace factory, Selangor & KL (about 2,000 sq ft) | RM3,700 | 2 years | RM44,400 | RM534 |
| Semi-detached factory, Selangor & KL (about 7,960 sq ft) | RM12,900 | 2 years | RM154,800 | RM1,860 |
| Detached factory, Selangor & KL (about 8,220 sq ft) | RM12,500 | 2 years | RM150,000 | RM1,800 |
The same RM19,700 detached factory in Klang shows how much the term band matters:
| Monthly rent | Term | Rate per RM250 | Stamp duty |
|---|---|---|---|
| RM19,700 | 1 year | RM1 | RM946 |
| RM19,700 | 2 or 3 years | RM3 | RM2,838 |
| RM19,700 | 4 or 5 years | RM5 | RM4,730 |
| RM19,700 | 6 years | RM7 | RM6,622 |
Under the pre-2025 scale (RM2 per RM250 above the first RM2,400 for 1 to 3 years) the 2-year example would have paid RM1,872. For large logistics leases the jump is bigger: at RM100,000 a month, stretching a 5-year term to 6 years adds RM9,600 of duty at the same rent. If you are also weighing up a purchase, the legal fees and stamp duty calculator covers the buying side.
Is stamp duty on a tenancy agreement compulsory?
Yes. A tenancy or lease is an instrument listed in the First Schedule of the Stamp Act, so it must be stamped. LHDN's stamp duty FAQ explains that stamping is what makes the agreement admissible as evidence, including in court if a dispute arises, and LHDN may audit instruments and related records. Under section 36CA, added by the Finance Act 2024, LHDN can raise an additional assessment within five years after the duty was paid or should have been paid, with no time limit for fraud, wilful default or negligence. For a factory tenant this matters most when you need to enforce a renewal option or recover a large deposit.
Who pays stamp duty on a tenancy agreement, and by when?
Under the Third Schedule of the Stamp Act, the tenant pays duty on the tenancy agreement and the landlord pays for the duplicate, per the LHDN guide above. The parties can agree a different split, so write it into the letter of offer.
| Rule | What it means | Source |
|---|---|---|
| Stamp within 30 days | From signing in Malaysia, or from arrival in Malaysia if signed abroad | LHDN penalty page |
| Late, within 3 months | RM50 or 10% of the unpaid duty, whichever is higher | Stamp Act s.47A (from 1 January 2025) |
| Late, beyond 3 months | RM100 or 20% of the unpaid duty, whichever is higher | Stamp Act s.47A |
| Not stamped | Not admissible as evidence in court until stamped with penalty (s.52) | LHDN stamp duty guide |
| Under-assessed | LHDN can raise an additional assessment up to 5 years later, with penalties | The Sun, on the Finance Act 2024 |
How do I stamp a tenancy agreement online on MyTax (e-Duti Setem)?
From 1 January 2026 the old STAMPS system became e-Duti Setem: you log in through MyTax, or at stamps.hasil.gov.my with an existing STAMPS account. Tenancies are in Phase 1 of the Stamp Duty Self-Assessment System (STSDS) from 1 January 2026; property transfers follow in 2027 and other instruments in 2028, per LHDN's STSDS page. There is no counter purchase of a stamp any more for most tenants: the duty is assessed, paid and certified online.
- Get a Tax Identification Number (TIN). LHDN's FAQ says every duty payer and representative, including every party to the agreement, needs one.
- Log in to MyTax and go to ezHASiL Services, Stamp Duty, e-Stamp Duty. Choose your role (individual or agent).
- Open Application Form, Stamping, pick the tenancy or lease category and upload the signed agreement with any supporting documents.
- Complete the Stamp Duty Declaration Form (BNDS): term, rent, property and parties. The system calculates the duty from what you enter and shows a summary and draft BNDS. Check it before you submit, because the submitted form is treated as the Collector's assessment.
- Pay within 30 days of submitting the BNDS by FPX, eTT (virtual account), or Public Bank or CIMB BizChannel bill payment.
- Download and print the stamp certificate and attach it to the agreement. It can be printed only once from the portal, so save the PDF. Keep the records for 7 years.
| Step on e-Duti Setem | Deadline or rule | Source |
|---|---|---|
| Submit for stamping | Within 30 days of signing (30 days after it reaches Malaysia if signed abroad) | LHDN stamp duty FAQ |
| Pay the self-assessed duty | Within 30 days of submitting the BNDS | LHDN stamp duty FAQ |
| Wrong figures in the BNDS | No penalty for an incorrect BNDS in the first year of STSDS; correct it through General Information Correction | LHDN stamp duty FAQ |
| Disagree with an assessment | Appeal through Application Form, Appeal; objection within 30 days (s.38A), then High Court within 21 days (s.39) | LHDN FAQ and LHDN stamp duty guide |
| Overpaid | Refund through Application Form, Refund, generally within 24 months | LHDN stamp duty FAQ |
Most tenants let their lawyer file, but check the term band and rent before paying. Under self-assessment an underpayment comes back later as an additional assessment with penalties, not as a correction at the counter.
Can a late stamping penalty be waived or reduced?
The late penalty is set by section 47A of the Stamp Act: RM50 or 10% of the unpaid duty within 3 months after the deadline, then RM100 or 20%, per the LHDN penalty page. Section 47A(2) of the Stamp Act 1949 lets the Collector reduce or remit the penalty if he thinks fit, so a tenant with a genuine reason can write to LHDN with the facts and documents. There is no automatic waiver.
LHDN did run a one-off amnesty: under the Special Voluntary Disclosure Programme (PKPS) for stamp duty 2026, penalties were waived automatically on instruments signed from 1 January 2023 to 31 December 2025 that were stamped and paid between 1 January and 30 June 2026. That window has closed. An unstamped tenancy found today pays the duty plus the section 47A penalty, and LHDN audits as usual. The cheapest route is still to stamp within 30 days.
Leases over 3 years: registration at the land office
Tenancies of 3 years or less need not be registered under the National Land Code. A longer lease should be registered against the title on Form 15A at the land office; see the Selangor land office lease registration checklist. Registration protects you if the landlord sells or the bank enforces its charge, but it adds fees, bank consent and time.
That is why many industrial deals are written as a fixed term plus an option. At RM19,700 a month (the registered median for detached factories in Klang and Port Klang):
| Structure | Duty on the first agreement | Registration | Suits |
|---|---|---|---|
| 1 year + 1-year option | RM946 | No | Short projects, trial production |
| 3 years + 3-year option | RM2,838 | No | Most manufacturing tenants |
| One 6-year lease | RM6,622 | Yes, Form 15A | Heavy fit-out, need for long-term security |
The option route keeps duty low and avoids registration, but your renewal depends on a tightly drafted option, and the renewal agreement is normally stamped when it is signed. Ask your lawyer how your option will be treated.
Service tax (SST) on factory and warehouse rent in 2026
Rental services became taxable at 8% on 1 July 2025. From 1 January 2026 the effective rate is 6%, as Prime Minister Anwar Ibrahim announced on 5 January 2026 (Malay Mail). Technically the 8% rate stays in the law and Customs grants a 2% exemption on all rental or leasing services until the subsidiary legislation is amended (Customs Service Tax Policy 2/2025, Amendment No. 3, 23 January 2026), so an invoice may show 8% less 2% or simply 6%. Homes are excluded; factories, warehouses and industrial land are taxable.
| Item | Rule in October 2026 | Source |
|---|---|---|
| Rate | Effectively 6% from 1 January 2026: 8% less a 2% exemption (8% in July to December 2025) | Customs policy 2/2025 |
| Who charges it | Only landlords registered for service tax | Customs |
| Landlord registration | Compulsory above RM1 million of taxable rental in 12 months | MOF Fiscal Outlook 2026 |
| Small tenants | Exempt with annual sales up to RM1.5 million, after registering and declaring on MyPMK; sales updated every year | Customs policy 2/2025 |
| New small businesses | Exempt for 1 year from SSM registration, after registering on MyPMK | Customs policy 2/2025 |
| Same-group companies | Intra-group rental exempt, subject to conditions | Customs Service Tax Policy 2/2025 |
| Refundable deposit | Not taxable unless it is really rent | Customs rental guide |
At the JPPH-registered median rents above, 6% adds RM210 a month on RM3,500, RM774 on RM12,900, RM900 on RM15,000 and RM1,182 on RM19,700. A private owner letting one mid-sized factory often stays under the RM1 million threshold and charges no SST. Ask for the landlord's SST number and state whether rent is inclusive or exclusive of SST. Utility charges the landlord recovers from you may count as taxable rent, so check the current Customs industry guide (rental guide updated May 2026).
The Budget 2027 speech on 9 October 2026 did not change tenancy stamp duty or the 6% rental tax: its tax measures touch stamp duty only on home loans, abandoned housing projects, savings accounts and certain loan agreements. Our Selangor warehouse rent guide shows rent per sq ft by area.
Key clauses in a factory or warehouse tenancy agreement
A house tenancy template does not fit a factory. Settle these points in the letter of offer, before the lawyer drafts.
| Clause | What to ask for | Why it matters |
|---|---|---|
| Term and renewal option | Fixed term plus an option, a notice window and a rent formula | Moving a production line costs far more than moving an office |
| Rent review | Fixed step, or market rent with a cap and a jointly appointed valuer | Without a formula, renewal rent is whatever the landlord asks |
| Deposits | Security and utility deposits listed separately, with a refund deadline | Large units tie up several months of rent |
| Permitted use and licences | Your actual activity named; landlord supplies documents for council, DOE or MITI approvals | A narrow use clause can sink a licence application |
| Power and M&E | Who applies to TNB and pays for the upgrade, substation, cranes and compressors | Only negotiable before signing |
| Fire certificate | Landlord hands over a valid Bomba certificate and working systems | Your use may trigger upgrades; agree the split now |
| Alterations | Consent not unreasonably withheld; who submits plans to the council | Mezzanines, racking, pits and openings often need approval |
| Reinstatement | Schedule of what stays and what goes, with handover photos | The most common deposit dispute |
| Subletting and assignment | Right to sublet part or assign to a group company | Flexibility if your space needs change |
| Quit rent, assessment, service charge | Owner pays quit rent and assessment; service charges itemised | These sometimes shift to the tenant in the fine print |
| Insurance | Landlord insures the building; you insure contents and public liability | Gaps show only after a fire or flood |
| Workers' hostel (Act 446) | Whether any on-site hostel may be used and certified | Housing workers without JTK certification is an offence |
Renewal option and rent review
Write the option as a right: the tenant "shall be entitled to" a further term on notice within a fixed window, at a rent set by formula. If renewal is at "prevailing market rent", say how it is set, and check JPPH-registered rents for your area so you negotiate from signed deals, not asking prices.
Permitted use, licences and power
Name your real process, such as food processing, plastic injection or chemical storage, and require the landlord to supply the title, approved plans, the Certificate of Completion and Compliance (see our CCC guide) and consent letters. If a licence is refused for reasons that come from the building, you need a right to terminate and recover deposits. On power, agree who applies to TNB, who pays, and whether the upgraded supply can stay without a reinstatement claim. If power decides the deal, start with high-power factories in Selangor.
Fire certificate, alterations and reinstatement
Designated premises need a fire certificate from Bomba, renewed yearly. The landlord should hand over a valid certificate; agree who pays if your racking height or stored goods require more sprinklers. Structural works need written landlord consent and usually council approval. Attach a dated schedule of condition, and list now which offices, mezzanines or power upgrades may stay at the end.
Workers' hostel and Act 446
Housing workers on site requires an accommodation certificate from the Labour Department (JTK) under Act 446, and JTK asks for the tenancy agreement when the building is rented. The lease must allow that use. See our Act 446 hostel guide.
Checklist before you sign and stamp
- Letter of offer covers rent, term, option, deposits, fit-out, rent-free period, stamp duty and SST
- Land search matches the landlord; bank consent obtained if the title is charged
- Use clause, licence documents, power, M&E and fire certificate duties written in
- Schedule of condition with photos and meter readings attached
- Duty estimated: annual rent x 0.4%, 1.2%, 2.0% or 2.8%
- SST confirmed: landlord's registration number, or your MyPMK exemption
- Stamped on MyTax within 30 days
Browse factories for rent in Selangor, Shah Alam factories for rent and Port Klang warehouses for rent, or send your specification through Find Me a Factory.
Frequently Asked Questions
How is stamp duty on a factory tenancy agreement calculated in Malaysia in 2026, and who pays it?
Divide one year's rent by RM250, round up, and multiply by RM1 (term up to 1 year), RM3 (over 1 to 3 years), RM5 (over 3 to 5 years) or RM7 (longer): 0.4%, 1.2%, 2.0% or 2.8% of the annual rent. The Stamp Act makes the tenant liable, though the tenancy can shift the cost to the landlord, and since 1 January 2026 the tenant self-assesses and stamps it on MyTax (e-Duti Setem) within 30 days of signing.
Is the RM2,400 stamp duty exemption for tenancy agreements still available after 2025?
No. The Finance Act 2024 removed it from 1 January 2025, so rent is dutiable from the first ringgit. Calculators that still deduct RM2,400 understate the duty.
Who pays stamp duty on a factory tenancy agreement?
The Stamp Act makes the tenant liable for the agreement and the landlord for the duplicate. The parties can agree otherwise in the letter of offer; if the agreement is silent, the tenant pays.
What happens if I stamp my tenancy agreement late?
You pay the duty plus RM50 or 10% of the unpaid duty (whichever is higher) within 3 months after the 30-day deadline, or RM100 or 20% after that. Until it is stamped, the agreement cannot be used as evidence in court.
Can I still use the STAMPS portal?
Yes, as a login route. Since 1 January 2026 STAMPS runs as e-Duti Setem: existing STAMPS accounts can still sign in at stamps.hasil.gov.my, or you go through MyTax. Tenancies are now stamped under self-assessment, which needs a Tax Identification Number.
Is there SST on factory or warehouse rent?
Yes, 6% from 1 January 2026, but only if the landlord is SST-registered, which is compulsory above RM1 million of taxable rental a year. Tenants with annual sales up to RM1.5 million can claim exemption on MyPMK, and refundable deposits are not taxed.
Does a 5-year factory lease need to be registered?
A lease over 3 years should be registered at the land office on Form 15A, while tenancies of 3 years or less need not be. A 5-year term also pays RM5 per RM250 of annual rent, against RM3 for 3 years.
What is the stamp duty rate for rental in Malaysia?
For a rent agreement signed from 1 January 2025 the rate is RM1, RM3, RM5 or RM7 for every RM250 of annual rent, for terms up to 1 year, over 1 to 3 years, over 3 to 5 years and over 5 years. Only one year's rent is used, the minimum duty is RM10 and each duplicate is RM10. A 2-year factory tenancy at RM19,700 a month pays RM2,838.
Is stamp duty on a rental agreement compulsory in Malaysia?
Yes. A tenancy is a dutiable instrument under the Stamp Act 1949, and an unstamped agreement cannot be used as evidence in court until the duty and penalty are paid. LHDN can also audit and raise an additional assessment within five years.
How do I do e-stamping for a tenancy agreement?
Log in to MyTax, go to ezHASiL Services, Stamp Duty, e-Stamp Duty, open Application Form, Stamping, upload the signed agreement and complete the BNDS. The system calculates the duty; pay within 30 days by FPX or online banking and print the stamp certificate. Every party needs a Tax Identification Number.
How can I waive a stamp duty late penalty?
Section 47A(2) of the Stamp Act allows the Collector to reduce or remit a late stamping penalty, so you can write to LHDN explaining why the agreement was stamped late. The automatic penalty waiver under the PKPS 2026 programme covered only instruments signed in 2023 to 2025 and paid by 30 June 2026, and has ended.
Does a tenancy renewal need to be stamped again?
A new renewal agreement or supplementary agreement is a separate instrument and is normally stamped when it is signed, at the rate for the renewal term. How an option clause is treated depends on how the agreement is drafted, so ask your lawyer before signing the first tenancy.
Buying or renting, talk to us
Send us the numbers that decide the shortlist: required amps, built-up area, floor loading, preferred area and target date. We reply with what actually exists, including units that are not advertised publicly. For 800A to 4,000A+ requirements, see high-power factories in Selangor.
| Agent | Licence | Mobile / WhatsApp | |
|---|---|---|---|
| Adam | 60176729873 | +60 17-672 9873 | |
| Yuki | 60167724476 | +60 16-772 4476 |
Factories and Warehouses in Port Klang
Live listings with power, ceiling height and floor loading for every unit:
