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 a tenancy agreement (TA) is a tax levied by IRAS on leases of immovable property in Singapore. It applies to both residential and commercial leases and is computed on the total rent payable over the lease term. The legal basis is the Stamp Duties Act (Cap. 312).
Stamping is mandatory — not optional. An unstamped TA is inadmissible as evidence in legal proceedings, which means a landlord cannot rely on an unstamped agreement to enforce lease terms or recover arrears in the Small Claims Tribunal or court.
Stamp Duty Rates for Tenancy Agreements
The ad valorem rate depends on the lease term, not the monthly rent figure in isolation. Rates are applied to the total rent (or average annual rent, depending on the method IRAS uses).
| Lease Term | Stamp Duty Rate | Basis |
|---|---|---|
| Indefinite / not exceeding 1 year | 0.4% | Total rent for the period |
| Exceeding 1 year, not exceeding 3 years | 0.4% | Average annual rent |
| Exceeding 3 years or indefinite term | 0.4% | 4× average annual rent |
For standard 1-year residential tenancies, stamp duty is 0.4% of the total annual rent. For a S$3,000/month tenancy (S$36,000/year), stamp duty is S$144. For a 2-year tenancy at S$3,000/month, stamp duty is 0.4% × S$36,000 (average annual rent) = S$144. For leases exceeding 3 years, the calculation uses 4 times the average annual rent.
Who Pays the Stamp Duty?
Under the Stamp Duties Act, the tenant is the party primarily liable to pay stamp duty on a tenancy agreement. In practice, however, the tenancy agreement may allocate this obligation differently — market convention in Singapore commonly places the cost on the tenant.
Agents should note that the legal obligation to stamp sits with the tenant regardless of what the TA says about who bears the cost. If the TA is not stamped, the tenant is exposed to penalties.
How to Stamp: IRAS e-Stamping Portal
IRAS requires all tenancy agreements to be stamped via the e-Stamping portal at iras.gov.sg. Paper-based stamping at stamp offices has been phased out for residential leases. The process:
- Log in to e-Stamping portal using Singpass
- Select "Stamp a Document" → "Lease / Tenancy"
- Enter details: property address, tenant name, lease start/end date, monthly rent, any rent-free period
- System calculates stamp duty payable
- Pay via PayNow, GIRO, or eNETS
- Download Certificate of Stamp Duty as proof of stamping
A certified stamp certificate should be attached to the original TA and kept by both parties for the duration of the lease and beyond.
Deadlines and Late-Stamping Penalties
The stamping deadline depends on where the TA was signed:
- Signed in Singapore: 14 calendar days from the date of execution (signing)
- Signed overseas: 30 calendar days from the date the document is first received in Singapore
Late stamping attracts penalties under Section 46 of the Stamp Duties Act. The penalty regime is:
| Delay After Deadline | Penalty |
|---|---|
| Up to 3 months late | S$10 or duty amount, whichever is higher |
| 3 to 6 months late | 2× duty amount or S$10 minimum |
| More than 6 months late | 4× duty amount or S$10 minimum |
Rent-Free Periods and Stamp Duty
If the tenancy agreement includes a rent-free period (e.g., 1 month rent-free for renovation), IRAS assesses stamp duty on the contractual rent — not on a reduced amount that accounts for the rent-free months. The rent-free period does not reduce the stamp duty base.
However, if the gross rent is contractually reduced (i.e., the TA specifies a lower rent from month 1), stamp duty is based on the lower contractual rent. Agents should ensure the TA is correctly drafted to reflect the parties' actual agreement.
Stamp Duty on Renewal and Extension of Tenancy
A formal renewal or extension agreement creates a new stamping obligation. If the parties execute a new TA (rather than operating under a holdover), that new TA must be stamped within the 14-day window. If the original TA includes an option to renew and the tenant exercises it, the renewal exercise letter may itself be stampable depending on its form.
Agents handling renewals should advise clients to confirm stamping requirements with a solicitor or IRAS directly, particularly for complex renewal structures.
Commercial and Industrial Leases
The same ad valorem rates apply to commercial and industrial leases. However, commercial leases often have longer terms (3–5 years), which can result in higher stamp duty amounts. For a 3-year commercial lease at S$10,000/month: average annual rent = S$120,000; stamp duty = 0.4% × S$120,000 = S$480.
For commercial leases exceeding 3 years, the 4× multiplier applies, which significantly increases the stamp duty payable.
Agent's Responsibility
CEA guidelines do not impose a direct legal duty on property agents to stamp tenancy agreements — this is the legal obligation of the tenant (or as allocated in the TA). However, agents routinely advise clients on stamping and may facilitate the process.
Best practice is to:
- Advise both landlord and tenant at the time of TA execution that stamping is required within 14 days
- Confirm who will handle the e-Stamping (tenant, landlord, or respective agents)
- Follow up to confirm stamping has been completed before the 14-day deadline
- Remind clients that the Certificate of Stamp Duty should be kept with the original TA
Frequently Asked Questions
Q: Is there stamp duty if the monthly rent is very low (e.g., S$500/month)?
A: Yes. There is no exemption threshold based on rental amount. Stamp duty at 0.4% applies regardless of how low the rent is. For S$500/month × 12 months = S$6,000 × 0.4% = S$24. There is a minimum of S$1 for stamp duty assessments, but practically all leases will exceed this.
Q: Who is liable if the tenant refuses to stamp?
A: Legally the tenant is the party obligated to stamp. If the tenant refuses and a dispute later arises, the landlord cannot rely on an unstamped TA in court. This creates real enforcement risk for the landlord. Agents should flag this clearly when advising landlords — some landlords include a TA clause requiring the tenant to provide proof of stamping within 14 days.
Q: Does stamp duty apply to a licence to occupy (rather than a tenancy)?
A: A licence to occupy is not a lease and is generally not stampable under the Stamp Duties Act in the same way as a tenancy. However, the substance of the arrangement (not the label) determines whether it is a lease. IRAS assesses based on the actual terms — if a 'licence' grants exclusive possession for a fixed term, it may be treated as a tenancy for stamp duty purposes.
Q: Can stamp duty be refunded if the tenancy is terminated early?
A: Generally no. Stamp duty paid on a TA is not refunded if the tenancy is terminated before its natural end date. The duty is payable based on the term stated in the agreement at the time of execution.
Q: What happens if the landlord is a company — does GST apply in addition to stamp duty?
A: Stamp duty and GST are separate obligations. If the landlord is GST-registered and the property is commercial or industrial, GST at 9% applies to the rental. Residential rent is GST-exempt regardless of whether the landlord is a company. Stamp duty is payable in addition to and independently of GST.
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.