Stamp Duty Rates
Stamp duty on leases involving different rental amounts for different periods will be computed based on the average annual gross rent. Thereafter, the appropriate rates of duty will be applied depending on the term of the tenancy stated in the document.
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 is computed on all 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 |
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 variable rentals and a lease term of 30 months is as follows :
| Premises at $6,600 per month for the first 6 months |
$39,600 |
| Premises at $7,400 per month for the remaining 24 months |
$177,600 |
| Furniture and fittings at $4,000 per month for 30 months |
$120,000 |
| Maintenance charges at $180 per month for 30 months |
$5,400 |
| Total gross rent for 30 months |
$342,600 |
- Average gross rent per month = $342,600 / 30 months = $11,420
- Average annual rent = $11,420 x 12 months = $137,040
- To determine how many parts of $250 in the annual rent = $137,040 / $250 = 548.16 (round up to 549)
Stamp Duty = 549 x $2= $ 1,098
Total stamp duty payable (if the document is executed in duplicate)
= Stamp Duty + Duty on duplicate
= $ 1,098 + $ 2
= $ 1,100
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 |