Stamp Duty needs to be paid on all lease documents. These include:
- Lease or Tenancy Agreement or Agreement for Lease to let or sublet the entire property or part of a property such as a room in a HDB flat
- Agreement to renew or extend the lease
- Agreement for Variation of Lease
- Acceptance to the Letter of Offer
- Any written agreement pertaining to any property leasing transaction
On this page:
What is a Lease with premium?
A Lease with premium is one where a lump sum payment is made instead of monthly or yearly rents.
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How to calculate Stamp Duty?
Stamp Duty is to be calculated by applying the Stamp Duty rates on the actual premium or market value whichever is higher.
The calculation is to include the following, where payable, but exclude GST charge:
- Base rent and any additional rent
- Service charge
- Maintenance charge
- Advertising and Promotion charge
- Furniture / Fittings charge
- Any other charges
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What are the Stamp Duty rates?
| Lease with Premium only |
Stamp Duty rates |
| Based on the actual premium or market value, whichever is higher |
|
| - Every $100 or part thereof of the first $180,000 |
$1.00 |
| - Every $100 or part thereof of the next $180,000 |
$2.00 |
| - Thereafter, every $100 or part thereof |
$3.00 |
| Lease with both premium and rent / other charges |
Stamp Duty rates |
For Stamp Duty rate on premium, please refer to the table above.
For Stamp Duty rate on other charges:
|
| For lease of up to 1 year |
$1.00 for every $250 or part thereof of annual rent |
| For lease of more than 1 year and up to 3 years |
$2.00 for every $250 or part thereof of annual rent |
| For lease of more than 3 years or for an indefinite term |
$4.00 for every $250 or part thereof of annual rent |
Where annual rent is $1,000 or less, Stamp Duty is exempted.
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Illustration of Stamp Duty calculation
A factory is leased for 3 years with the tenant paying a premium of $200,000:
| Calculation of Stamp Duty on Lease / Tenancy with only premium paid |
Stamp Duty on premium of $200,000
|
| For the first $180,000 |
= ($180,000 / $100) x $1
= $1,800 |
| For the next $20,000 |
= ($20,000 / $100) x $2
= $400 |
| Stamp Duty payable |
= $1,800 + $400
= $2,200 |
You may also use our Stamp Duty Calculator to calculate the Stamp Duty payable.
To stamp your document online, click here.
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Do I need to pay Stamp Duty on a letter of intent or licence agreement?
A letter of intent is not liable to Stamp Duty because it does not amount to a lease agreement.
A licence agreement that does not tantamount to a lease is also not liable to Stamp Duty.
Characteristics of a lease
Typically, a lease gives a person, the "lessee", the right to exclusive possession, allowing the person to occupy, use and otherwise enjoy the property to the exclusion of all others for a fixed or determinable period of time. This is an interest in the property out of which sub-interests may be carved and assigned (subject to the terms and conditions of the lease).
Characteristics of a licence
Whilst there are several variations, a licence entitles a person, the "licensee", to enter and use the property for specific purposes authorised by the licence, but without conferring on the licensee either exclusive possession or any estate in the land. The entitlement is thus either gratuitous, or a personal right which is not generally transferable.
For example, a lodger in a hotel has a personal contractual right to occupy the room for a fixed period in exchange for a fee, but has neither exclusive possession nor a property interest in the room itself. He is thus a licensee.
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