Stamp Duty on leases is payable based on the contractual rental or the market rental, whichever is higher, at the Lease Duty rates.
On this page:Stamp duty is payable on documents relating to leases of immovable properties in Singapore such as :
Please note that licence agreements are not subject to stamp duty. Licence agreements are commonly used for the letting out of a food stall in a food court, coffeeshop or hawker centre. If you are unsure if your agreement is a licence or a lease/tenancy, you may wish to seek independent legal advice or submit the document for adjudication. Please note that adjudication fees will be payable for the latter.
A lease with fixed rental is one for which a fixed rental is agreed upfront for the entire lease period. Stamp duty on the fixed rental is based on lease duty rates.
A lease with premium is one for which there is a lump sum payment. Stamp duty is payable on the premium based on the BSD rates. If there is a rental in addition to the premium, stamp duty is payable on the rental based on lease duty rates.
A lease with variable rental is one for which the rental varies during the lease period.
In a lease involving an additional rental component based on a percentage of the GTO, you are to estimate the GTO and determine the additional rent payable. This additional rent shall be included for the stamp duty calculation i.e. the rent that is subject to stamp duty is the sum of the fixed rental (if any) and the additional rental derived from the estimated GTO.
Where the additional rental component is subject to a maximum or minimum secured sum, the additional rent that is subject to stamp duty shall be:
| Types of additional rental component | Additional rent subject to stamp duty |
|---|---|
| Based on a percentage of GTO, subject to a maximum secured sum | The maximum secured sum |
| Based on a percentage of GTO, subject to a minimum secured sum | The higher of the amount derived from the estimated GTO or the minimum secured sum |
Additional rent subject to stamp duty
Please refer to Examples 1 to 3 below on the calculation of stamp duty for leases involving staggered rental or a percentage of GTO.
If there is an increase in rental or the lease period is extended, stamp duty is payable on the document based on the increase in rental or the rental for the extended lease period.
However, if there is a decrease in rental or the lease period is shortened, stamp duty is not payable for the document.
Other variations where stamp duty is not payable
Please refer to Examples 4 to 6 below on the calculation of stamp duty for variation of leases.
Stamp duty is payable on the consideration paid by the landlord to the tenant for the surrender of lease at the BSD rates.
| Average Annual Rent (AAR) 1 | Lease Duty Rates |
|---|---|
| AAR does not exceed $1,000 | Exempted |
| AAR exceeds $1,000 | |
| Lease period of 4 years or less | 0.4% of total rent for the period of the lease |
| Lease period of more than 4 years or for any indefinite term | 0.4% of 4 times the AAR for the period of the lease |
Lease duty is rounded down to the nearest dollar, subject to a minimum duty of $1.
1 AAR refers to the higher of the average annual contractual or annualised market rent and includes other considerations such as payments for:
3-month Lease
1st Month: $3,000
2nd Month: $3,000
3rd Month: $4,000
Total Rent
$3,000 + $3,000 + $4,000 = $10,000
Lease Duty
0.4% x $10,000 = $40.00
4-year Lease
1st Year: $3,500 per month
2nd Year: $4,000 per month
3rd Year: $4,300 per month
4th Year: $5,300 per month
Total Rent
($3,500 + $4,000 + $4,300 + $5,300) x 12 = $205,200
Lease Duty
0.4% x $205,200 = $820.80
$820.00 (rounded down to the nearest dollar)
5-year Lease
1st Year: $1,800 per month
2nd Year: $2,000 per month
3rd Year: $2,500 per month
4th Year: $3,000 per month
5th Year: $3,300 per month
Total Rent
($1,800 + $2,000 + $2,500 + $3,000 + $3,300) x 12 = $151,200
Average Annual Rent
$151,200 / 5 years = $30,240
4 Times of AAR
= $30,240 x 4 = $120,960
Lease Duty
0.4% x $120,960 = $483.84
$483.00 (rounded down to the nearest dollar)
i) A lease with fixed rental and an additional rental based on a percentage of gross sales turnover (GTO), without a maximum or minimum secured sum
To calculate the Stamp Duty payable:
| Additional Rent subject to Stamp Duty | 0.5% x GTO = 0.5% x $100,000 = $500 |
| Estimated Gross Rent Per Month | $5,000 + $500 (i.e. the additional rent) + $400 + $100 = $6,000 |
| Total Rent | $6,000 x 36 months = $216,000 |
| Stamp Duty Payable | 0.4% x $216,000=$864.00 |
ii) A lease with fixed rental and an additional rental based on a percentage of GTO that is subject to a minimum secured sum
To calculate the Stamp Duty payable:
The higher of the amount derived from the estimated GTO or the minimum secured sum:
The additional rent subject to stamp duty would be $600
0.4% x $219,600 = $878.40
$878 (rounded down to the nearest dollar)
iii) A lease with fixed rental and an additional rental based on a percentage of GTO that is subject to a maximum secured sum
To calculate the Stamp Duty payable:
0.4% x $221,400 = $885.60
5-year Lease
1st Year: $1,800 per month
2nd Year: $2,000 per month
3rd Year: $2,500 per month
4th Year: $3,000 per month
5th Year: $3,300 per month
Increase in Total Rent (Capped at 4 Years)
$154,560 - $120,960 = $33,600
Stamp Duty Payable (0.4% of the increase in Total Rent & Capped at 4 Years)
0.4% x $33,600 = $134.40
$134 (rounded down to the nearest dollar)
If the lease period has not commenced, and the lease was brought forward or deferred without any changes in the gross rent or lease term, stamp duty is not payable.
i) Bringing forward the lease
| Original Lease Period & Rent | Variation of Lease / Supplemental Agreement before lease commences |
|---|---|
| 6-month lease 1 Jun 2020 – 30 Nov 2020 | 6-month lease where lease start date was brought forward to 1 Apr 2020 1 Apr 2020 – 30 Sep 2020 |
| Monthly Rent $3,000 per month | Monthly Rent $3,000 per month |
| Total Rent $3,000 x 6 = $18,000 | Total Rent $3,000 x 6 = $18,000 |
| Stamp Duty is not payable on the Variation of Lease as there is no change in the gross rent or lease period |
ii) Deferring the lease
| Original Lease Period & Rent | Variation of Lease / Supplemental Agreement before lease commences |
|---|---|
| 12-month lease 1 Jun 2020 – 31 May 2021 | 12-month lease where the lease start date was deferred to 1 Sep 2020 1 Sep 2020 – 31 Aug 2021 |
| Monthly Rent $5,000 per month | Monthly Rent $5,000 per month |
| Total Rent $5,000 x 12 = $60,000 | Total Rent $5,000 x 12 = $60,000 |
| Stamp Duty is not payable on the Variation of Lease as there is no change in the gross rent or lease period |
The landlord grants an extension to the lease period, but provided a rent-free period equivalent to the extended period. Stamp duty is payable on the extended period.
| Original Lease Period & Rent | Variation of Lease / Supplemental Agreement |
|---|---|
| 12-month lease 1 Jan 2020 – 31 Dec 2020 | 15-month lease where the original lease period was extended by 3 months 1 Jan 2020 – 31 Mar 2021 |
| Monthly Rent $10,000 per month | Monthly Rent First 3 months: $10,000 per month Next 3 months: $0 (Rent-free period) Remaining 9 months: $10,000 per month |
| Total Rent $10,000 x 12 = $120,000 | Total Rent First 3 months: $10,000 x 3 = $30,000 Next 3 months: $0 (Rent-free period) Remaining 9 months: $10,000 x 9 = $90,000 Total Rent: $30,000 + $0 + $90,000 = $120,000 |
| Stamp Duty Payable (0.4% of the rent for the extended period from 1 Jan 2021 – 31 Mar 2021) 0.4% x ($10,000 x 3) = $120 |
For rates before 22 Feb 2014, please refer to Stamp Duty for Property.
Please refer to How to stamp Lease or Tenancy Agreements for the illustrated guide for stamping a Lease or Tenancy Agreement.