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IRAS Conducted Audit on Stamp Duty for Leases 
Posted on Monday, June 27, 2005 - 12:00 AM

The Inland Revenue Authority of Singapore (IRAS) recently conducted a stamp duty audit on a few commercial buildings. In one building, it found that close to 9% of all the Lease Agreements were not duly stamped, as required under the Stamp Duty law. The tenants have since been asked to pay the stamp duties as well as the penalties imposed. The maximum penalty is four times the amount of duty.

The law requires stamp duty to be payable on a LEASE or AGREEMENT for a lease of any immovable property. Hence, any exchange of correspondence between the parties or any written document confirming the lease or renewal of lease would be subject to stamp duty.

The amount of duty payable depends on the lease term and the rent. For a typical 2-year lease, the duty is about 0.8% of the annual rent. For example if the monthly rent is $5,000, stamp duty payable will be $480.

Stamp duty is payable within 14 days from the date of the Agreement if it is signed in Singapore and within 30 days from date of receipt in Singapore if it is signed outside Singapore. Late stamping will attract penalties. Evasion of stamp duty is a serious offence that could lead to a fine of up to $10,000 or to imprisonment for a term not exceeding 3 years or both.

IRAS would like to advise Landlords/Tenants to ensure that their Agreements are duly stamped. If these have not been stamped, they should voluntarily present them for stamping immediately.

Housing Agents handling the leasing of properties should also advise their clients of the requirement to stamp the Agreements.

For members of the public who are represented by a tax or housing agent, the stamping of the Lease Agreements will be done by the agent electronically from his office or at the service bureau operated by CrimsonLogic Pte Ltd. Stamping of documents is also available at IRAS Stamp Office at the ground floor of Revenue House.

More information on stamp duty is available on IRAS website at http://www.iras.gov.sg . Members of the public can also call the IRAS Stamp Office enquiry lines at 6351 3697/8.