Stamp duty on your tenancy agreement as an expat: who pays and how much

It's one of the smaller costs of renting in Singapore, but it's also one of the most commonly missed. Here's how it works.

We handle this with expat clients all the time, because it lands in the busiest week of a move: the agreement is signed, the keys are about to change hands, and a 14 day clock has started. Here's how it works, and what we do about it.

What it is

Stamp duty is a tax on the tenancy agreement itself, not on the property. The Inland Revenue Authority of Singapore (IRAS) charges it on residential leases, and paying it produces a stamp certificate proving the agreement has been stamped.

Who pays

By convention, the tenant pays. Your agreement can say otherwise, so check the clause, but assume it's you unless it states the landlord will cover it.

What we do. We read the stamp duty clause before you sign, so you know up front whether it's you or the landlord.

How much

For a lease of four years or less, which covers almost every residential tenancy, the duty is 0.4% of the total rent for the whole lease period.

Total rent means the full term, not one month.

A few examples:

• $4,000 a month on a 12-month lease: total rent $48,000, duty $192

• $4,000 a month on a 24-month lease: total rent $96,000, duty $384

• $6,500 a month on a 24-month lease: total rent $156,000, duty $624

Duty is rounded down to the nearest dollar. If the average annual rent is $1,000 or less, the lease is exempt, which won't apply to most whole-unit rentals.

When to pay

If the agreement is signed in Singapore, it must be stamped within 14 days of signing. A different window applies if it's signed overseas, so check IRAS if that's your situation.

Late stamping attracts penalties, and they can be several times the original duty. Diarise it the day you sign.

If you're signing before you land in Singapore, flag it early, because the window is different.

What we do. We ask where the agreement is being signed, we note the stamping date the day you sign, and we remind you before the window closes.

How to pay

Through the IRAS e-Stamping portal. You'll need the agreement details, the rent, the lease dates and the parties' particulars. Your agent may offer to handle it.

What we do. We check that it has been done and that the certificate is in your hands.

Why it matters

Beyond avoiding a penalty, an unstamped agreement generally can't be relied on as evidence until it's stamped and any penalty paid. If a deposit dispute ever gets serious, you want your agreement in order.

Some banks and employers also ask for the stamp certificate as proof of your tenancy.

Renewals and changes

A renewal is a new lease and needs to be stamped again.

If you change an existing lease mid-term, for example increasing the rent through a supplemental agreement, duty may be payable on the increase. IRAS publishes worked examples for these cases.

What we do. When a lease is renewed or varied, we flag that the new document needs stamping too.

Why doing it yourself is where it slips

Nothing about stamp duty is hard. The sum is simple and the portal is straightforward. What goes wrong is timing. The 14 days start the day you sign, which is also the week you're arranging the move, setting up utilities and starting a new role.

Nobody sends you a reminder, and the penalty can be several times the duty you were avoiding. It's also easy to assume the agent, or the landlord, has done it.

The short version

Assume you're paying it. It's 0.4% of the total rent over the lease. Stamp within 14 days of signing. Keep the certificate.

If you'd rather have someone keep the dates for you, that's part of how we look after a lease. See how it works on the Doors page, from the search through to the move-out inspection.

Doors by The Yellow Door helps expats find and settle into homes in Singapore, from the search through to the move-out inspection. This article is general information and not legal advice. Rules and rates change, so check the current position with IRAS before you act.