For simplicity`s sake, we will look at the stamp duty formula for fixed-rate leases. There are also different methods of calculating stamp duty for premium leases, fixed-rate leases, leases with Novation or assignment, the surrender of the lease, leases with an increase in the rental price or longer rental periods, but we will consider fixed-rate leases that are often used most often to keep you confused. Property Rental Stamp Duty – a fee that must be paid if it has signed a lease over a period by an owner in Singapore. The additional rent subject to stamp duty would be $600 The landlord grants an extension of the term of the tenancy, but grants a rent-free period corresponding to the extended period. Stamp duty must be paid for the extended period. The owner will not have an easy life either. As the lease is not recognized by the authorities, he could be charged for the illegal rental of his house. The consequences of non-payment of stamp duty could therefore be bad for both the tenant and the landlord. In the event of an increase in rent or an extension of the term of the lease, stamp duty must be paid on the document based on the increase in rent or the rent of the extended tenancy period. The rental stamp tax calculator helps you determine the amount of stamp duty that IRAS must pay for the signed lease. This applies to all property rented by landlords to tenants. Hello Xoo, you are right 😀 Stamp duty also applies to room rentals.
I corrected the article. Thank you for your valuable feedback on this article 🙂 be in touch! If you need more help and service to help you find tenants or find a new location for the next six months or more, please contact us. Please note the examples 1 to 3 below for the calculation of stamp duty for installment or percentage GTO leases. In Singapore, a tenant must pay a tax (surprise!) in addition to the monthly rent and deposit when signing the rental agreement. Other than stamp duty, it is payable if a tenant: for example, if the monthly rent is 2,000 S. and the lease is 12 months, the annual rent is 24,000 USD. As a result, the rental fee is 0.4% x $24,000 – $96. This article is misleading. Room rentals must also be stamped. Please read the IRAS website before publishing. Do you use an agent to get in touch with the tenant and does the tenant also have an agent? If both are the case, it is advisable to let the agents process this part of the agreement. Another example: if the lease term were 18 months instead of 24 months, the stamp duty payable would be $216, as shown below.
The rental contract is recognised by the authorities and is legally binding only if all relevant stamps and seals are in place and stamp duty is properly paid. If the tenant pays stamp duty too late within 3 months, he must pay a fine of 10 USD or an amount equivalent to stamp duty (depending on the measure of something). Stamp duty on leases must be paid on the basis of contract or market rent, depending on the higher amount, at rent tax rates. However, in the event of a decrease in rent or a reduction in the duration of the tenancy, the document is not subject to a stamp duty. It is punishable to use a document for which stamp duty has not been collected.