Tenancy Agreement Malaysia 2026: Stamp Duty & Deposit

Updated 8 September 2026 against official sources (see the notes marked in the article).

Tenancy Agreement Malaysia 2026 is the only thing standing between you and a landlord who wants to “makan” your 2.5 months deposit.

You just got a new job in KL. You found a nice studio unit. The landlord smiles and says, “Sign here, standard contract only.” Walaoeh, hold your horses! That “standard contract” might contain a clause that says you lose everything if you move out one day early.

Quick Answer: A Tenancy Agreement Malaysia 2026 cannot be used as evidence in court until it is Stamped (Stamp Act 1949, section 52).

• The Cost: The tenant usually pays the Stamp Duty.
• The Calculation: under the Stamp Act 1949, First Schedule, Item 49(a) (replaced by the Finance Act 2024 from 1 January 2025), every RM250 of annual rent, or part of RM250, is charged RM1 for a tenancy of 1 year or less, RM3 for more than 1 year up to 3 years, RM5 for more than 3 years up to 5 years, and RM7 for more than 5 years.
• The Deposit: The standard is “2+1+0.5” (2 months Security + 1 month Advance + 0.5 Utilities).
• The Trap: If you don’t have a “Diplomatic Clause” or “Early Termination Clause”, you might be liable to pay the entire remaining rental duration if you quit early.

In this guide, we break down the Tenancy Agreement Malaysia 2026 terms, how to calculate the Stamp Duty Calculation 2026, and how to fight back if your landlord refuses to return your money.

What's insideStamp dutyGet it back

There is no single “Government Act” that defines the contract (The Residential Tenancy Act is still in draft/limbo as of 2026). So, the contract is King.

A solid Tenancy Agreement Malaysia 2026 must have:

1. Details: Name, IC, Address of property.
2. Tenancy Period: Start Date and End Date.
3. Deposit Amounts: Clearly list Security (2 months) and Utilities (0.5 months).
4. Renewal Clause: Can you extend next year at the same price, or can the landlord hike it by 20%?
5. Diplomatic Clause: Crucial for expats or outstation workers. It allows you to break the contract if you are transferred/deported.

Before you rent, make sure you can actually afford the place. Use the “30% Rule” (Rent should not exceed 30% of salary). Check your benchmarks at 👉 Malaysia Average Salary 2026.

“Boss, can don’t stamp? Save money?”
No. An unstamped Tenancy Agreement Malaysia 2026 cannot be admitted in court as evidence under the Stamp Act 1949, section 52(1) — but the same section lets you fix that at the point you need it, by paying the duty plus any penalty then and there. It is cheaper to stamp it upfront than to pay a penalty later when you actually need to sue over the deposit or a locked-out flat.

Every RM 250 of annual rent, or part of RM 250, is charged by the length of the tenancy:

• 1 year or less: RM 1.
• More than 1 year, up to 3 years: RM 3.
• More than 3 years, up to 5 years: RM 5.
• More than 5 years: RM 7.
• Minimum: if the result is under RM 10, the duty is RM 10 (Stamp Act 1949, section 36CB).

• Monthly Rent: RM 1,500.
• Annual Rent: RM 18,000.
• Units of RM 250: RM 18,000 ÷ 250 = 72.
• Stamp Duty, 1-year tenancy: 72 × RM 1 = RM 72.
• Same rent, 2-year tenancy: 72 × RM 3 = RM 216.
• Note: Usually, the landlord charges an “Admin Fee” (RM 100 – RM 300) to do this for you.

How to stamp it in 2026: tenancy agreements are in phase 1 of LHDN’s Stamp Duty Self-Assessment System (STSDS), which started on 1 January 2026; the old STAMPS portal closed on 31 December 2025. You, or an agent you appoint, need a Tax Identification Number (TIN). Log in to 🔗 MyTax, open Perkhidmatan ezHASiL → Duti Setem → e-Duti Setem, fill in the stamp duty return form (BNDS), upload the signed agreement and pay online. The duty is worked out from what you enter, and the return counts as assessed on the day you submit it. Stamp within 30 days of signing, or a late-stamping penalty applies. Once payment is confirmed, the stamp certificate is generated: print it, attach it to the agreement, and keep the agreement and its records for 7 years from the date the duty is paid. On the main agreement the duty is the tenant’s to pay; on the landlord’s copy, the landlord’s (Stamp Act 1949, Third Schedule, item 8).

This is the #1 dispute. You signed for 1 year, but after 6 months, you need to move out (maybe you got fired or hate the housemates).

• Scenario A (Strict Contract): The clause says “Tenant must pay for the unexpired term”. This means if you leave 6 months early, you owe them 6 months of rent!
• Scenario B (Standard Contract): “Deposit forfeited”. You lose your 2.5 months, but you don’t owe extra.
• Scenario C (With Replacement): You find a new tenant to take over. Most reasonable landlords will return your deposit if you do the work for them.

If you are moving because the internet is terrible, make sure the next place has proper coverage. Check: 👉 Best Home Fibre Broadband Malaysia 2026.

The Tenancy Agreement Malaysia 2026 usually states the deposit has a deposit-return window, but no law fixes that number — it is whatever the clause in your own agreement says. If a landlord disputes the deductions or will not pay it back, see 👉 Landlord Tenant Dispute Malaysia 2026: Rent and Eviction.

That refundable deposit is separate from two others most tenants never think about: TNB and your water operator each hold their own regulator-set deposit on the same house, covered in our electricity and water account guide.

1. The Handover: Do a joint inspection on the last day. Take photos of everything.
2. Utility Clearance: Pay your last TNB/Water bill and show the receipt. (Read: 👉 TNB Bill Calculator 2026 to settle disputes).
3. Wear vs Tear: The landlord cannot charge you for “paint fading” or “old piping leaking”. That is fair wear and tear. They can charge you for a broken window or a hole in the wall.

If the amount is under RM 5,000, you can file a claim at the Small Claims Court (Mahkamah Tuntutan Kecil). You don’t need a lawyer. The gazetted filing fee is RM 20 (Rules of Court 2012, Appendix B2, as substituted by P.U. (A) 67/2013) — not “under RM 50” as a rough estimate. For what a landlord can and cannot do about arrears or a deposit dispute, see 👉 Landlord Tenant Dispute Malaysia 2026: Rent and Eviction.

What the clause says: Many standard tenancy agreements push aircond servicing onto the tenant, in a line like “the Tenant shall maintain the air-conditioners”. It is the easiest clause to sign and then forget about.

Where it goes wrong: On handover day the landlord asks for the chemical servicing receipts. No receipts means no proof the clause was followed, so “servicing the units” becomes a deduction from the deposit, even when the aircond is still blowing cold. The burden of proof sits on the tenant.

What to do instead: Read the maintenance clause before signing and note how often it says the servicing must be done. Use a shop that issues a proper receipt, keep a photo of every receipt until the deposit is back, and photograph each unit on the last day along with the rest of the joint inspection.

When signing a Tenancy Agreement Malaysia 2026, watch out for these red flags:

1. “Viewing Fee”: The agent asks for RM 50 just to open the door. SCAM.
2. “Bank Transfer to Personal Account”: If dealing with an agent, transfer to the Agency’s Client Account, not the agent’s personal Maybank.
3. The “Invented” Damage: They charge you RM 500 for a “scratch on the parquet floor” that was already there. Solution: Always do a Photo Inventory Check-in List on Day 1.

If you are buying furniture for a rented room (like a mattress or vacuum), make sure you buy things you can easily move. See our review: 👉 Best Robot Vacuum Malaysia 2026.

For legal info on housing rights, refer to the 🔗 National House Buyers Association (HBA) – they cover tenant issues too occasionally.

This Tenancy Agreement Malaysia 2026 guide is for educational purposes. We are not a law firm. If you have a complex dispute involving large sums, please consult a licensed lawyer.