Stamp duty is a tax on executed documents relating to properties or interest in properties and shares or interest in shares. Stamp duty is payable only on documents described in the First Schedule to the Stamp Duties Act (Cap 312). These documents include a lease, sale and purchase, gift or mortgage of property. It is not a tax on transactions. If the agreement is verbal and no document is executed (signed) for that agreement, then no stamp duty is payable.
Liability arises once the document is executed. Hence, even if the transaction has been aborted, stamp duty is still payable on the document.
Some examples of documents that are not liable to stamp duty are:
Service contracts not in connection with the granting of a lease
Deed of Appointment of Trustees - where it does not involve vesting of interest
Loan agreements not relating to properties and shares
Settlement not relating to properties and shares such as cash settlement
Letters of Guarantee / Indemnity
Statutory Declaration, Affidavit
Assignment of intangible assets such as Goodwill, Trademark and Patents
Assignment of book debts / receivables (eg. sale proceeds)
Promissory Note
Letters of Appointment / Revocation of Power of Attorney
Will
Hire Purchase Agreement
Charter-party
Declaration to change from joint tenancy to tenancy in common of equal shares
Declaration to hold as Joint Tenants by Tenants in common in equal shares
For more details on removal of fixed and nominal duties, please refer to our e-Tax Guide on Stamp Duty: Removal of Fixed and Nominal Duties (Second Edition) (116 KB)
For more details on the other abolished documents, please see Changes in Stamp Duty on Instruments Executed On or After 28 Feb 98 (12 KB)
If a document relating to more than one matter is executed, according to Section 6 to the Stamp Duties Act (Cap 312), the document will be stamped separately for each matter. In such instances, more than one set of stamp duty will be charged. The following are some examples:
- Sale and lease-back of property
- Sale and buy-back of property
- Lease with a contract for sale of fixtures
- An instrument whereby more than one property is leased to the same tenant and where the terms and conditions for the lease of each of the properties differ