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Stamp duty rates on lease agreement revised wef 22/2/2014

Stamp duty rates on lease agreement revised wef 22/2/2014.

For documents executed on or after 22 Feb 2014:

  1. The stamp duty payable for leases with lease period of 4 years or less will be calculated based on the total contractual and other considerations or market rent, whichever is higher.
  2. For leases with lease period of more than 4 years, the stamp duty payable will be calculated based on 4 times the average annual rent (AAR).
  3. AAR refers to the higher of the average annual contractual or annualised market rent and includes other considerations such as payments for :
    • Service charge
    • Maintenance charge
    • Advertising and Promotion charge
    • Furniture / Fittings charge
    • Any other charges, but exclude GST charge

i) Before 22 February 2014

Lease Duty Rates
(a) Where average annual rent (AAR) does not exceed $1,000 Exempted
(b) Where AAR exceeds $1,000 :
Lease period up to 1 year Every $250 or part thereof of the AAR $1
Lease period of more than 1 year and up to 3 years $2
Lease period of more than 3 years or for any indefinite term $4

Source: https://www.iras.gov.sg/irashome/Other-Taxes/Stamp-Duty-for-Property/Stamp-Duties-Rates-before-22-Feb-2014/

ii) On and After 22 February 2014

Lease Duty Rates
(a) Where average annual rent (AAR) does not exceed $1,000 Exempted
(b) Where 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

Source: https://www.iras.gov.sg/irashome/Other-Taxes/Stamp-Duty-for-Property/Working-out-your-Stamp-Duty/Renting-a-Property/

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