Stamp Duty on leases is payable based on the declared rental or the market rental, whichever is higher, at the Lease Duty rates.
Stamp duty is payable on documents relating to leases of immovable properties in Singapore such as :
Lease or tenancy agreement
A lease with fixed rental is one for which a fixed rental is agreed upfront for the entire lease period. Stamp duty on the fixed rental is based on lease duty rates.
A lease with premium is one for which there is a lump sum payment. Stamp duty is payable on the premium based on the BSD rates. If there is a rental in addition to the premium, stamp duty is payable on the rental based on lease duty rates.
A lease with variable rental is one for which the rental varies during the lease period.
Examples
If there is an increase in rental or the lease period is extended, stamp duty is payable on the document based on the increase in rental or the rental for the extended lease period.
However, if there is a decrease in rental or the lease period is shortened, stamp duty is not payable for the document.
Other variations where stamp duty is not payable
Stamp duty is payable on the consideration or the market value of the leasehold interest transferred, whichever is higher, at the BSD rates.
Stamp duty is payable on the consideration for the leasehold interest surrendered at the BSD rates.
1AAR refers to the higher of the average annual contractual or annualised market rent and includes other considerations such as payments for:
$3,000 + $3,000 + $4,000 = $10,000
Lease Duty 0.4% x $10,000 = $40.00
($3,500 + $4,000 + $4,300 + $5,300) x 12 = $205,200
Lease Duty 0.4% x $205,200 = $820.80 $820.00 (rounded down to the nearest dollar)
($1,800 + $2,000 + $2,500 + $3,000 + $3,300) x 12 = $151,200
Average Annual Rent
$151,200 / 5 years = $30,240
4 Times of AAR
= $30,240 x 4 = $120,960
Lease Duty 0.4% x $120,960 = $483.84 $483.00 (rounded down to the nearest dollar)
5-year Lease 1st year: $2,000 per month 2nd year: $2,500 per month 3rd year: $3,500 per month 4th year: $3,800 per month 5th year: $4,300 per month
Total Rent ($1,800 + $2,000 + $2,500 + $3,000 + $3,300) x 12 = $151,200
Stamp Duty Payable (0.4% of the increase in Total Rent & Capped at 4 Years)
0.4% x $33,600 = $134.40 $134.00 (rounded down to the nearest dollar)
For rates before 22 Feb 2014, click here.
68KB, PDF