Stamp Duty On Rental Agreement Singapore


    The owner will not have an easy life either. As the lease is not recognized by the authorities, he could be prosecuted for illegally renting his house. The consequences of non-payment of stamp duty could therefore be devastating for both the tenant and the owner. The rental fee calculator helps you determine the amount of stamp duty to be paid to IRAS for the signed rental agreement. This applies to any property rented by the owners to tenants. If the annual rent exceeds the Singapore dollar One thousand (S$1000) and the rental term is less than or equal to 4 years, the tax rate is 0.4% of the total rent for the rental period. The stamp certificate contains several pieces of information such as the document reference number, the stamp certificate reference number, the document description, the address of the property, the amount paid and the names of the parties in the document. Looking for a rented apartment? Do you have a free room for rent? Look at ease! With online apps, digital leases, and online rents, Comfy`s online platform for landlords and tenants helps simplify their rental experience. If the tenant pays the stamp duty late within 3 months, he will have to pay a penalty of 10 $US or an amount equivalent to the stamp duty to be paid (whichever is greater). Stamp duty is a tax that the tenant must pay to the Inland Revenue Authority of Singapore (IRAS) at the time of signing the lease. It should be paid if the tenant rents the whole house or part of a house (for example.

    B a room) or if the lessor renews or renews the lease. 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: for rental contracts with an average annual rent of $1,000 and below, no stamp duty is payable by the tenant and the tenant is exempt from paying stamp duty. You must complete form E1A from the IRAS website ( and stamp it with an IRAS representative. 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. 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. Technically, a lease must be stamped before tenants sign it. However, for practical reasons, this almost never happens. In reality, a rental agreement can still be stamped without penalty if it is concluded within the following timeframes: let`s look at one of the most common types of rental 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.

    According to IRAS, the party that is required to pay the rent stamp duty is usually stated in the agreement. A variable rent lease is a contract in which the rent varies over the duration of the tenancy. It is advisable to make the necessary arrangements to pay the stamp duty due in a timely manner, as fees may be levied for late payments. Based on the allowed schedule, there is usually more than enough time to stamp the documents, so remember to do so within the stated period in order to avoid penalties….