A lease must be properly stamped and stamp duty paid before the tenant and lessor sign it. But this almost never happens in practice. Thus, a rental agreement can always be stamped without penalty if: Rental Stamp Duty Calculator helps you determine the amount of stamp duty to be paid to IRAS for the signed lease. This applies to any property rented by the owners to tenants. Let`s look at one of the most common types of rentals in Singapore. For a fixed type of leasing, stamp duty is based on the leasing tax rates, which represent 0.40% of the total rent during the term of the lease agreement. A fixed-rent lease is a contract for which a fixed rent is agreed in advance for the entire duration of the lease. Stamp duty on fixed rent is based on leasing rates. For example, if the agreed fixed rent is $1,000 per month for a 3-year lease, the calculation is as follows: the leasing tax is rounded to the next dollar, subject to a minimum fee of $1. The amount of stamp duty depends on the monthly rent and the duration of your rental. Below is an example of an apartment with a total monthly rent of $3000 for a rental period of 18 and 24 months.
The higher the rent and the longer the length of stay, the higher the amount of stamp duty to be paid. I have simplified the message in this article. Thank you for reporting and informing us! A beautiful day 🙂For a lease of less than 4 years, the stamp duty is 0.4% of the total rent for the duration of the lease. Here`s an example of a 24-month (2-year) lease with a monthly rent of $2,500: after you make sure your rent is legal in Singapore, you have 10-14 days from the start of the lease to pay stamp duty. Hello AL, you must insist that the tenant show you the stamp certificate. There is a website to verify the authenticity of the certificate. estamping.iras.gov.sg/WebForms/Home.aspx And yes, IRAS will come after you, if the stamp duty is not executed, it must be made within 14 days of your signature, in the absence of a late penalty. After signing the lease, the tenant is responsible for paying the stamp duty, so the contract is mandatory and effective. Stamp payments can be made by GIRO, bank transfer, eNETS, check, FAST, AXS kiosk ATMs and more. Please see examples 1 to 3 below to calculate stamp duty for leases on a tiered lease or a percentage of GTO. If the rental period has not started and the lease has been advanced or postponed without any change in gross rent or rental period, no stamp duty is payable. The payment of the amount due of stamp duty is not so difficult.
IRAS has an e-buffer portal under e-Services that allows you to make the necessary payments for stamp duty online via e-Nets. Just enter the right details such as the rental amount, the rental period, the data of the owner and tenants and make the necessary payment. You may also need to prepare your bank`s security cart to complete the payment. Stamp duty is a tax on documents related to the purchase or rental of real estate….