Summary

A tenancy agreement for a Singapore home must be stamped when the average annual rent exceeds S$1,000, according to the Inland Revenue Authority of Singapore (IRAS). For a lease with a fixed term of four years or less, lease duty is generally 0.4% of the total rent for the period. A two-year lease at S$4,000 a month carries S$384 of duty.

Duty is due within 14 days of signing in Singapore, or within 30 days of receiving the document in Singapore if it was signed overseas. When the agreement does not say who pays, the tenant is liable, IRAS says. Unstamped or understamped documents can draw penalties of up to four times the amount underpaid.

How lease duty is worked out

IRAS charges duty on the higher of two figures: the rent stated in the agreement or the market rent of the property. Rent for this purpose includes payments for maintenance and service charges, and excludes GST.

RuleWhat IRAS says
Rate0.4% of the total rent for leases of four years or less; 0.4% of four times the average annual rent for longer or indefinite leases
BasisContractual rent or market rent, whichever is higher
When duty appliesAverage annual rent above S$1,000
Who paysThe party the agreement names; the tenant if it names no one
Deadline14 days after signing in Singapore; 30 days after receipt if signed overseas
PenaltyUp to four times the amount underpaid

Sources: IRAS Renting a Property; IRAS stamp duty basics; IRAS answers on Ask Gov.

The market-rent rule matters for discounted leases: duty is charged on the higher of the contractual and market rent, so a flat let cheaply to a relative is stamped on what the market would pay.

For leases longer than four years, or without a definite term, duty is 0.4% of four times the average annual rent. Duty is rounded down to the nearest dollar, with a minimum of S$1, IRAS says.

Illustration only, at IRAS's 0.4% rate, on rents with no separate service charges:

  • Two-year lease of a condo unit at S$4,000 a month: total rent S$96,000, duty S$384.
  • One-year agreement for a room at S$1,250 a month: total rent S$15,000, duty S$60.
  • One-year renewal of the condo lease at the same rent: total rent S$48,000, duty S$192.

Rooms, sub-leases, renewals and new tenants

  • Rooms. A tenancy agreement for a room must be stamped and lease duty paid, at 0.4% of the contractual or market rent, whichever is higher, IRAS says.
  • Sub-leases. IRAS notes that under the Stamp Duties Act, stamp duty is payable on all leases of immovable property, including sub-leases. A tenant who has stamped a lease for a whole unit and then sublets a room under a new agreement must stamp that agreement too.
  • Renewals and extensions. A signed renewal or extension is treated as a fresh document and stamped on the period it covers, even if the rent is unchanged. On myTax Portal, an extension is filed as a "Variation of Lease". If an extension is agreed without any document being signed, no duty arises, IRAS says.
  • Change of tenant. No stamping is needed for a novation in which the incoming tenant takes over the remaining lease period on the same terms and rent, with no payment between the parties.

Deadlines, certificates and penalties

If the parties sign on different dates, the 14 days run from the first signature, IRAS says. A lease can also be stamped before it is signed. Once it is signed, duty is payable in full on the lease period written in the document.

Stamping is done on myTax Portal, under Stamp Duty, then Stamping, then the lease and tenancy option. The tenant is liable unless the agreement says otherwise, so a tenant should ask for the Stamp Certificate even if the landlord or agent stamps the lease, and can check its authenticity at go.gov.sg/verifystampcertificate, IRAS says.

What this means for Singapore tenants and landlords

For tenants, the sum is small next to the rent, but the obligation sits with them by default. On a two-year lease at S$4,000 a month, S$384 of duty is less than a tenth of one month's rent; a missed deadline is what makes it expensive. Read the stamp duty clause before signing, and keep the certificate with the lease.

For landlords, writing a lower rent into the agreement does not reduce the duty when the market rent is higher. Owners who let rooms on separate agreements should expect each one to be stamped, and every signed renewal is a new document for stamp duty.

Education only — not tax, legal or investment advice. Confirm with a licensed professional.

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