Who Should Pay Stamp Duty For Tenancy Agreement Singapore

When renting a property, whether it is a residential, commercial, commercial property, a small room or an HDB apartment, the law requires that you pay stamp duty on the rental agreement. If the annual rent is more than the thousand Singapore dollar ($1,000) and the duration of the tenancy is 4 years or less, the rental fee rate is 0.4% of the total rent for the duration of the tenancy. In addition to complying with the law, the addition of a lease agreement serves an even more important purpose: to make the lease recognizable in court. In the event of a dispute over the lease, the court will not allow the case if the lease is not stamped. Technically, a rental agreement is required, which must be stamped before the tenant signs it. But this almost never happens in practice. In reality, a lease can always be stamped without penalty if it is completed within the following time frames: We have addressed some of the most important issues regarding the right to lease. We hope you find this useful. Stamp duty is a tax on documents related to the purchase or rental of a property. It is payable within 14 days of the date of the document (z.B: sales contract, lease); if the document is signed in Singapore.

The owner will not have an easy life either. As the lease is not recognized by the authorities, he could be charged for the illegal rental of his house. The consequences of non-payment of stamp duty could therefore be bad for both the tenant and the landlord. If the payment is delayed by more than 3 months, the fine is $25 or four times the tax payable, depending on the measure. The IRAS may take other steps to recover unpaid customs duties. Most owners are aware of stamp duty for purchase and sale contracts. But stamp duty on rental properties is often overlooked. In Singapore, all leases are stamped online on the IRAS e-Stamping portal. It takes 5-10 minutes and you get the stamp certificate immediately.

Another example: if the lease term were 18 months instead of 24 months, the stamp duty payable would be $216, as shown below. For rents of no more than 4 years, stamp duty is 0.4% of the total rent for the duration of the tenancy. Here`s an example of a 24-month (2-year) lease with a monthly rent of US$2,500: The thing is: It`s not uncommon for the landlord to stamp the lease first. And then refund the tenant for stamp duty. You can pay stamp duty of this rent online at IRAS. The landlord or the authorities may act against a tenant who does not pay stamp duty on time or who ignores the payment. Otherwise, the tenant has a duty to make the stamp. It is advisable to inform him in order to show the evidence in the form of a receipt as soon as he does so. In this contribution, we have covered in detail stamp duty for rental properties. Make sure your lease is stamped on time.

It is punishable to use a document for which stamp duty has not been collected. Hello Jamal, I would like to report an error in the calculation, even if it is quite incidental – in the second example, the two 72,000 dollars (respectively in the second and third rows) should be 54,000 dollars, I believe 🙂 Thanks for the useful information! And do you also know, by chance, how much an agent charges for processing documents usually charged? I was asked to pay quite a large amount as an administration fee, so I became unscepted about it… If you are a landlord and would like to confirm whether your tenant has paid stamp duty, received the document reference number and the stamp certificate, just check in online with the IRAS.

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