You can up stamp a lease document (second document) if the rental contracted under a previously stamped lease (first document) has increased. The lease term and parties involved in the tenancy must remain the same. Stamp duty must have been paid on the previous stamped lease document before up stamping can be done. Additional stamp duty will be computed on the increase in rental.
For example, the stamp duty paid on a previously stamped lease was $192 based on the gross rent of $2,000 per month for 2 years. A lease document is executed to reflect the increase in gross rent from $2,000 to $3,000 per month for the remaining 6 months of the lease term of 2 years, the stamp duty will be as follows :
Total gross rent for 18 months = $2,000 x 18 months = $36,000
Total gross rent for remaining 6 months = $3,000 x 6 months = $18,000
Average annual rent = ($36,000 + $18,000) / 2 years = $27,000
Taking the difference between the new average annual rent and the old annual rent = $27,000-24,000 = $3000
To determine how many parts of $250 in the difference of annual rent = $3000 / 250 = 12
Additional stamp duty = 12 x $2 = $24
A fixed duty of $10 is chargeable on any document (second document) where the rent has been revised downwards or the lease term has been shortened under a previously stamped document (first document) and where the other contractual terms remain unchanged.
As announced in Budget 2011, fixed duty has been removed for most documents executed on and after 19 February 2011. If the document is executed before 19 February 2011, fixed duty remains payable.
Example on reduction in rent:
A Tenancy Agreement was stamped based on a monthly gross rent of $2,000 for a 2-year lease. During the 2-year lease period, the monthly gross rent was revised downwards to $1,500 via a second document where all the other contractual terms remain unchanged. The second document is liable to a fixed duty of $10.
Example on shortening of lease term:
A Tenancy Agreement was stamped based on a monthly gross rent of $2,000 for a 2-year lease. After half a year, the lease period is shortened to 1 year through the execution of a second document where all the other contractual terms remain unchanged. The second document is liable to a fixed duty of $10.
There is no refund of stamp duty on the Tenancy Agreement (first document) for the reduced rent or for the unexpired term even though the lease period has been shortened. For more details, please refer to circumstances where a refund can be given.
You cannot up stamp if the lease term and parties to the contract have changed. This is regarded as a fresh lease and you have to pay the full duty.