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What is a Surrender of Lease?
A Surrender of Lease document may be executed in a situation where an existing tenant gives up or agrees to give up all the tenancy rights back to the landlord.
The Surrender of Lease document needs to be stamped. The rates for stamp duty will depend on the terms stated in the document.
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What are the stamp duty rates and how to compute?
Stamp Duty Rates
Stamp duty imposed will depend on the nature of the document. The tables below show the applicable rates.
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.
Fixed Duty
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Duty |
Surrender of lease from existing tenant to landlord, where no consideration is involved or where compensation is paid by tenant to landlord for early termination
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$10 for document executed before 19 February 2011.
Duty is removed for document executed on and after 19 February 2011.
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Full Duty
For a Surrender of Lease from existing tenant to landlord, where consideration is paid, by landlord to tenant for the surrender, stamp duty will be based on the consideration.
Conveyance
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Duty
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Based on the Consideration
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- Every $100 or part thereof of the first $180,000
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$1.00
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- Every $100 or part thereof of the next $180,000
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$2.00
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- Thereafter, every $100 or part thereof
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$3.00
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How to compute?
An example on the computation of stamp duty on consideration or premium paid for a document relating to Surrender of Lease is as follows:
If the consideration / premium of $284,000 is paid, what is the stamp duty?
Every $100 or part thereof of the first $180,000
Every $100 or part thereof of the next $180,000
Stamp Duty on consideration / premium
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= ($180,000 / $100) x $1
= $1,800
= ($104,000 /$100) x $2
= $2,080
= $3,880
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