Stamp Duty Rates
Stamp Duty for lease documents will be computed based on the gross rent and premium paid for the tenancy term.
Gross Rent for each period must include :
- Base Rent
- Service Charge, if any
- Maintenance Charges, if any
- Advertising and Promotion Charges, if any
- Furniture / Fittings Charges, if any
- Other Charges, any additional rent arising from turnover sales, if any
Stamp duty on leases includes all other charges (except GST) paid by tenant to landlord.
The stamp duty rates are as follows :
|
Where the lease term is for a period |
| Where the annual rent exceeds $1000 |
Up to 1 year
|
More than 1 year and up to 3 years
|
More than three years or for an indefinite term
|
| For every $250/- or part thereof of the average annual rent |
$1 |
$2 |
$4 |
Stamp Duty Rates for Premium
For leases involving a premium, stamp duty will also be charged on the premium paid. The rate is as follows: -
Stamp Duty Based on the Premium / Consideration
| Every $100 or part thereof of the first $180,000 |
$1 |
| Every $100 or part thereof of the next $180,000 |
$2 |
| Every $100 or part thereof of the remainder |
$3 |
Duty on Duplicate
Duty on duplicate is $2. This additional amount will be added to the stamp duty payable.
As announced in Budget 2011, duty on duplicate document executed on and after 19 February 2011 has been removed. If the document is executed before 19 February 2011, duty on duplicate remains payable.
Stamp Duty Computation
An example on the computation of stamp duty for leases involving premium is as follows :
If the rental is $10,000 per month for a lease term of 3 years and a premium of $284,000 is also paid, what is the stamp duty?
Computation of stamp duty of a lease involving premium
1)
|
To find the annual rental
|
$10,000 x 12 months = $120, 000
|
2)
|
To determine how many parts of $250 in the annual payment
|
|
$120,000 / 250
= 480
|
3)
|
Stamp Duty Payable
|
|
As the lease term is for 3 years,
Stamp Duty on the lease portion = 480 x $2
= $960
Stamp duty on the premium portion = ($1,800 x1) + ($1,040 x 2)
= $1,800 + $ 2,080
= $3,880
|
4)
|
Total Stamp Duty Payable = $960 + $3,880
= $4,840
|
Nominal Duty
Stamp duty is to be paid on the first lease document before nominal duty can be charged on subsequent documents executed for the same lease.
As announced in Budget 2011, nominal duty has been removed for subsequent document executed on or after 19 February 2011. If the subsequent document is executed before 19 February 2011, nominal duty remains payable.
Nominal Duty Charges
| Documents executed relating to the same lease |
Nominal Duty |
| Agreement for Lease executed after an Acceptance to Letter of Offer, where the contractual terms of the lease remain unchanged |
$10 |
| Lease executed after an Acceptance to Letter of Offer, where the contractual terms of the lease remain unchanged |
$2 |
| Lease executed after an Agreement for Lease, where the contractual terms of the lease remain unchanged |
$2 |