Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
What Is Tenancy Stamp Duty?
Stamp duty on tenancy agreements is a tax on rental contracts — separate from Buyer's Stamp Duty and Additional Buyer's Stamp Duty, which apply to property purchases. Every residential and commercial tenancy agreement executed in Singapore must be stamped with the Inland Revenue Authority of Singapore (IRAS) within the prescribed time limit.
An unstamped tenancy agreement is not void — it is still a valid contract between the landlord and tenant. However, an unstamped agreement cannot be used as evidence in any legal proceedings (e.g., to enforce a rental clause or claim unpaid rent) without first paying the outstanding stamp duty plus a penalty. For landlords and tenants, the practical risk is that they cannot rely on the agreement in court until it is stamped.
How Stamp Duty on Tenancy Agreements Is Calculated
The stamp duty on a tenancy agreement is calculated based on the total rent over the lease term, using a tiered rate structure. The rates applicable to residential tenancy agreements are:
- Lease term of 1 year or less: 0.4% of total rent for the lease term
- Lease term of more than 1 year but not more than 3 years: 0.4% of the average annual rent (i.e., total rent divided by the number of years)
- Lease term of more than 3 years or with an uncertain term: 0.4% of 4 times the average annual rent
In practice, for most residential tenancies (1-year or 2-year tenancies), the stamp duty is 0.4% of the total rent for the period. On a S$3,000/month 2-year tenancy, the total rent is S$72,000 and the stamp duty is S$288.
| Scenario | Monthly Rent | Lease Term | Stamp Duty |
|---|---|---|---|
| 1-year tenancy | S$3,000 | 12 months | S$144 (0.4% × S$36,000) |
| 2-year tenancy | S$3,000 | 24 months | S$288 (0.4% × S$72,000) |
| 1-year tenancy | S$6,000 | 12 months | S$288 (0.4% × S$72,000) |
| 2-year tenancy | S$6,000 | 24 months | S$576 (0.4% × S$144,000) |
Who Pays Tenancy Stamp Duty?
Under the Stamp Duties Act, the stamp duty on a tenancy agreement is primarily the liability of the tenant (the lessee). In practice:
- By default, the tenant is responsible for paying the stamp duty on the tenancy agreement
- The parties may agree by contract that the landlord pays all or part of the stamp duty — this is a negotiable commercial term. Some landlords in competitive rental markets pay the stamp duty as an incentive
- Regardless of who pays, the obligation to stamp falls on both parties to the agreement. If the tenant fails to stamp, the landlord may also face consequences if they rely on the unstamped agreement in proceedings
- In transactions arranged by property agents, the agent should advise both parties of the stamp duty obligation and the deadline, and ensure the tenant (or their solicitor) is aware of the requirement before or at the time of executing the tenancy agreement
The E-Stamping Process
Tenancy agreements in Singapore are stamped electronically through the IRAS e-Stamping portal (mytax.iras.gov.sg). The process is:
- Log in to the IRAS MyTax portal using Singpass. Foreign tenants without Singpass may need to arrange stamping through a nominee or their solicitor
- Select "Stamp Document" and choose the document type (lease or tenancy agreement). Enter the relevant details: start and end dates of the tenancy, monthly rent amount, and property address
- The portal calculates the stamp duty payable. Payment is made online (PayNow, GIRO, or other available payment methods). Upon payment, a stamp certificate is generated
- The stamp certificate should be kept with the original tenancy agreement. If the agreement is needed as evidence in any dispute, the stamp certificate confirms the agreement has been duly stamped
Deadlines and Late Stamping Penalties
- Signed in Singapore: The tenancy agreement must be stamped within 14 days of execution
- Signed overseas: The tenancy agreement must be stamped within 30 days of receiving it in Singapore
- Late stamping penalty: IRAS imposes a late stamping penalty equal to the higher of S$10 or the amount of unpaid stamp duty, up to a maximum penalty of 4 times the unpaid duty depending on the delay period. The penalty increases with the length of the delay
- Stamping after dispute arises: IRAS still allows late stamping with penalty payment even after a dispute has arisen — but the court may take the late stamping into account in the proceedings
Stamp Duty on Tenancy Agreement Renewals and Addendums
- When a tenancy is renewed or extended, a new stamping obligation arises for the renewal term if a new agreement or addendum is executed
- If the rental rate changes at renewal, the new stamp duty is calculated on the new rental rate for the new term
- Minor addendums that do not change the rental amount or lease term (e.g., approving a pet or minor renovation) may not require separate stamping — but agents and clients should confirm with IRAS or a solicitor if in doubt
Frequently Asked Questions
Q: Is stamp duty charged on the security deposit?
A: No. Stamp duty on a tenancy agreement is calculated on the total rent payable under the lease — the security deposit is not rent and is not included in the stamp duty calculation. Only the monthly rental payments (and any other periodic rent-equivalent payments) are included in the calculation base.
Q: Does stamp duty apply to short-term rental agreements of less than 6 months?
A: Yes. Stamp duty applies to all tenancy agreements regardless of the duration of the lease. A 3-month short-term tenancy agreement is subject to stamp duty at the standard rate of 0.4% of the total rent for the term. The exemption thresholds relate to the rate calculation (which changes at 1-year and 3-year intervals), not to whether stamp duty is payable at all.
Q: What if the tenancy agreement is a verbal agreement with no written document?
A: A verbal rental agreement is not subject to stamp duty because there is no document to stamp — stamp duty is imposed on instruments (documents), not on oral agreements. However, a verbal tenancy agreement also cannot be enforced in court as easily as a written stamped agreement. In practice, for any tenancy where a deposit is paid or a rental term exceeds one month, agents should always recommend a written tenancy agreement to both landlord and tenant to protect all parties.
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.