Stamp duty on a tenancy agreement

Rates and thresholds change. The current figures are kept in one place: the Singapore property rules reference.

Every tenancy agreement for a property in Singapore attracts stamp duty, calculated on the rent payable across the lease period. The exact computation method and current rate schedule are set by IRAS and can change, so rather than quote a fixed formula here, the safest step is to run the actual figures through IRAS's own stamp duty calculator before signing.

In practice, the tenancy agreement itself usually states who bears the cost. Market convention in Singapore rentals is for the tenant to pay stamp duty, though this is a matter of agreement between the parties, not a legal requirement placed on either side specifically. Once agreed, the stamping is typically done online through IRAS shortly after both parties sign, and the resulting stamp certificate should be kept as proof.

Stamping matters beyond the immediate tax obligation. A stamped agreement is often required as proof of address for banking, school registration, or embassy purposes, and it can matter if a dispute over the tenancy ever needs to be brought before the Small Claims Tribunals, since an unstamped document can complicate that process.

What commonly goes wrong is agreements being left unstamped because one party assumes it is optional, using an outdated calculator estimate instead of the current rate, or forgetting that a renewed or varied lease, not just the original agreement, needs to be stamped again.

Before signing, run the actual figure through IRAS's current calculator, confirm in writing who is responsible for paying, complete the stamping promptly after signing, and remember to restamp when a lease is renewed or its terms change materially.

Stamp duty is charged again whenever the terms of a tenancy materially change, not just on the first agreement. A renewed lease, a rent variation, or an extension of the term are all treated as fresh documents for stamp duty purposes, even where the same landlord and tenant simply continue the arrangement. Missing this step at renewal is one of the more common oversights in an otherwise well managed tenancy.

Because the rent payable over the full term is what the duty is calculated on, a lease with a step up structure, where rent increases in a later year of a multi year term, is worked out differently from a flat rent lease. IRAS's calculator handles this directly, which is another reason to run the actual figures there rather than estimate by hand.

What to check

• The actual duty payable, run through IRAS's current calculator rather than an old estimate
• Written confirmation of which party is responsible for paying
• Stamping completed promptly after both parties sign
• Whether the agreement includes options to renew that will also need stamping later
• Keeping the stamp certificate on file as proof of the tenancy

Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.