Variation of Lease or Supplemental Agreement, which involves a change in the lease term or rental payable, is liable to stamp duty.
If the variation of lease or supplemental agreement relates to an extension in the lease term, the variation of lease or supplemental agreement will be regarded as a fresh lease. Therefore, stamp duty will be based on the gross rental.
If there is an increase in the rental within the same lease term, this variation of lease may be up stamped.
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 such documents executed on and after 19 February 2011. If the document is executed before 19 February 2011, fixed duty remains payable.
Stamp duty rates and computation
Person liable to pay stamp duty
Stamping existing lease with revised terms (e.g. additional or reduction in rental)
Examples of Variation of Lease or Supplemental Agreement that are not liable to stamp duty
Removal of Fixed and Nominal Duties