Tenancy Agreement Stamp Duty Malaysia 2026: Factory and Warehouse Rates, SST and Key Clauses
Stamp duty on a Malaysian tenancy 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 real Selangor rents, MyTax stamping, 6% SST on rent and the industrial lease clauses that matter.
Key Takeaways
- Stamp duty on a tenancy 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 RM20,300 a month (the JPPH median for 10,000 to 30,000 sq ft units in Selangor) pays RM2,925, up from about RM1,930 under the old scale.
- The tenant pays unless agreed otherwise, and the agreement must be stamped within 30 days on MyTax (e-Duti Setem). Late stamping costs RM50 or 10% within 3 months, then RM100 or 20%.
- Service tax on factory and warehouse rent is 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.
A factory or warehouse tenancy agreement in Malaysia must be stamped with LHDN within 30 days of signing, and the tenant normally pays. The duty is RM1, RM3, RM5 or RM7 for every RM250 of annual rent, depending on whether the term is up to 1, 3 or 5 years or longer, so a 2-year tenancy costs 1.2% of one year's rent. If the landlord is registered for SST, 6% service tax is added to the rent.
This guide covers the stamp duty, 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.
Tenancy agreement stamp duty in Malaysia: 2026 rates
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, as The Sun's tax column reported. The same Act set a RM10 minimum duty per instrument.
| 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.
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 using real Selangor factory rents
JPPH-registered industrial tenancies in Selangor (2,145 in the 24 months to July 2026) have a median rent of RM5,000 a month and a median term of 24 months. Using the median rent for each size band from our Selangor industrial transactions page:
| Unit size (JPPH median rent) | Term | Annual rent | Stamp duty |
|---|---|---|---|
| 3,000 to 10,000 sq ft (RM8,400/month) | 2 years | RM100,800 | RM1,212 |
| 10,000 to 30,000 sq ft (RM20,300/month) | 2 years | RM243,600 | RM2,925 |
| 30,000 to 60,000 sq ft (RM54,000/month) | 3 years | RM648,000 | RM7,776 |
| Above 60,000 sq ft (RM105,000/month) | 5 years | RM1,260,000 | RM25,200 |
| Above 60,000 sq ft (RM105,000/month) | 6 years | RM1,260,000 | RM35,280 |
Under the pre-2025 scale the RM54,000 tenancy would have paid about RM5,166. For large logistics leases, stretching a 5-year term to 6 years adds RM10,080 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.
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 to stamp a tenancy agreement on MyTax (e-Duti Setem)
The old STAMPS portal closed after 31 December 2025, and LHDN's STAMPS notice sends users to MyTax. 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.
- The paying party needs a Tax Identification Number (TIN).
- Log in to MyTax, open e-Duti Setem and upload the signed agreement.
- Complete the STSDS return (term, rent, property) and self-assess the duty. The return counts as the assessment, so the figures are your responsibility.
- Pay online, print the stamp certificate, and keep records for 7 years.
Most tenants let their lawyer file, but check the term band and rent before paying.
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 RM20,300 a month:
| Structure | Duty on the first agreement | Registration | Suits |
|---|---|---|---|
| 1 year + 1-year option | RM975 | No | Short projects, trial production |
| 3 years + 3-year option | RM2,925 | No | Most manufacturing tenants |
| One 6-year lease | RM6,825 | 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 rate is 6%, as Prime Minister Anwar Ibrahim announced on 5 January 2026 (Malay Mail). Homes are excluded; factories, warehouses and industrial land are taxable.
| Item | Rule in October 2026 | Source |
|---|---|---|
| Rate | 6% from 1 January 2026 (8% in July to December 2025) | MOF via Malay Mail |
| 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 on MyPMK | MOF, 5 January 2026 |
| New small businesses | One-year deferment | MOF via Malay Mail |
| 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 median rents above, 6% adds RM504 a month on RM8,400, RM1,218 on RM20,300, RM3,240 on RM54,000 and RM6,300 on RM105,000. 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. 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.
FAQ
How much is stamp duty for a tenancy agreement in Malaysia?
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). That equals 0.4%, 1.2%, 2.0% or 2.8% of the annual rent, plus RM10 per duplicate.
Is the RM2,400 stamp duty exemption for tenancy agreements still available?
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?
No. STAMPS closed after 31 December 2025. Tenancy agreements are now stamped on MyTax through e-Duti Setem 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.
Buying or renting, talk to us
FactoryHub is the industrial-only platform of Peter Tan (REN 12771) and Jason Low (PEA 1478), registered with BOVAEP under CID Realtors Sdn Bhd E(1) 1855. We handle both rent and sale, and we co-broke across the whole market, so if the right unit is another agent's listing we will still put it in front of you.
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 | |
|---|---|---|---|
| Peter Tan | REN 12771 | +6016-666 6872 | peterindustrial |
| Jason Low | PEA 1478 | +6012-288 1834 | massiveaction |
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