If you are renting out a property in Singapore, you will probably come across stamp duty when you prepare the tenancy agreement.
Stamp duty is a tax you pay on certain legal documents, including a tenancy agreement for a rental property.
It is not a tax on the value of your property, and it is not the same as the annual property tax. IRAS classifies lease and tenancy agreements as documents that can be subject to stamp duty.
There are four things worth knowing from the start:
- The tenancy agreement is the document being stamped.
- The agreement should state who is responsible for paying the stamp duty.
- For most residential leases of four years or less, the duty is 0.4% of the total rent for the lease when the Average Annual Rent exceeds S$1,000.
- Even if your tenant is responsible for paying it, you should check that the agreement has actually been stamped and keep the Stamp Certificate.
The amount is usually small compared with the rent you collect, but it is still an obligation that should not be overlooked when you rent out a property.
If you are still deciding whether becoming a landlord fits your broader investment plans, our beginner’s guide to property investing in Singapore covers the main considerations before buying a property for investment.
What Is Stamp Duty for Rental Properties in Singapore?
Stamp duty is a tax charged when certain legal documents are created or signed. For rental properties, the document is usually the tenancy agreement between the landlord and tenant.
In other words, when you rent out your condo, HDB flat, landed property or other qualifying property, the tenancy agreement is a document that may need to be stamped with IRAS.
It’s like an official recording that the required tax has been paid on the agreement.
Once the stamp duty has been paid, a Stamp Certificate is issued.
This is the document that shows the tenancy agreement has been stamped. It is recommended that you, as landlord, obtain a copy of the Stamp Certificate, even when the tenant is the person responsible for paying the duty.
Why Does a Rental Agreement Need to Be Stamped?
Singapore’s stamp duty rules apply to certain documents involving property, and IRAS specifically includes lease and tenancy agreements among these documents.
So, if you have just found a tenant and signed a tenancy agreement, stamp duty is one of the administrative steps alongside things such as collecting the deposit, handing over the keys and starting the tenancy.
To calculate the amount of stamp duty, you use the rent and duration stated in the tenancy agreement. For example, if the rent is S$3,000 per month for 12 months, the total rent is S$36,000 and the stamp duty at 0.4% would be S$144.
Rental Stamp Duty vs Rental Income Tax
As mentioned previously, a rental stamp is a tax associated with the tenancy agreement, so it is not a tax on the rent you earn.
Income tax is the tax you pay on income you earn, including the rent you receive if you lease out your property. In Singapore, this is governed by IRAS rules, which set out what rental income is taxable and what expenses or deductions may be claimed.
Who Pays Stamp Duty on a Rental Property?
In most rental situations, the tenant is responsible to pay unless the agreement says otherwise. Which is why the tenancy agreement should state who is responsible for paying the stamp duty.
A landlord and tenant can therefore agree on a different arrangement.
Regardless of who pays, however, the landlord should still make sure the stamping has been completed. IRAS specifically advises landlords to ensure the tenant has submitted the stamping record, paid the duty and sent the Stamp Certificate to the landlord.
How Much Is Stamp Duty for Rental Properties?
For leases of four years or less with an Average Annual Rent above S$1,000, stamp duty is usually 0.4% of the total rent for the whole lease period.
Imagine you rent out a property for:
S$3,000 per month × 24 months = S$72,000 total rent
At 0.4%, the basic stamp duty would be:
S$72,000 × 0.4% = S$288
When Must Rental Stamp Duty Be Paid?
You should deal with the stamp duty before the tenancy agreement is signed, or within the allowed period after signing.
If it has already been signed, it should be stamped within 14 days if signed in Singapore, or within 30 days if signed overseas and received in Singapore.
Once the agreement has already been signed and the tenant is responsible for the stamp duty, you can ask for the Stamp Certificate once the payment has been made.
What Happens If You Miss the Stamping Deadline
Late stamping can result in a penalty. IRAS has also published examples from its stamp duty audits where unstamped or insufficiently stamped lease agreements were found, including residential tenancy agreements. In those cases, penalties of up to four times the duty were imposed.
The exact penalty depends on the circumstances, so it is always advisable to check the latest IRAS rules on stamp duty and ensure you stay updated.
What Landlords Should Do After a Tenancy Agreement Is Signed
1. Confirm Who Is Responsible for Stamp Duty
First, check the tenancy agreement.
If it states that the tenant is responsible, the tenant should handle the stamping and payment.
If you or your property agent is handling it on the tenant’s behalf, make sure everyone understands who is submitting the document and making the payment.
2. Make Sure the Agreement Is Stamped on Time
If the tenant is handling the stamping, you do not necessarily need to submit the document yourself.
What you should do is follow up and make sure it has actually been completed.
This is especially important if you are managing the property yourself. A signed tenancy agreement does not mean the stamp duty process has automatically been taken care of.
3. Obtain the Stamp Certificate
Once the stamp duty has been paid, a Stamp Certificate is issued.
Ask your tenant to send you a copy and keep it with your tenancy agreement.
It is worth keeping because the tenancy agreement may become important later if there is a disagreement over the rental arrangement.
4. Keep the Stamped Agreement With Your Property Records
Keep the following together:
- Signed tenancy agreement
- Stamp Certificate
- Records of rent received
- Relevant property expenses
- Documents relating to changes to the tenancy
Keep the tenancy agreement and Stamp Certificate together in one place so it’s easier to find them later for tax or property management.
5. Check Whether Later Changes Require Additional Stamping
If the terms of the tenancy change later, the change may also have stamp duty implications. IRAS specifically includes Agreements for Variation of Lease among documents subject to lease duty, and its stamp duty audit examples include variation letters involving an increase in rent.
For example, if a tenancy is extended and the rent increases from $2,000 to $2,200 a month, the new agreement may need to be stamped again, meaning the original Stamp Certificates may no longer apply.
How to Stamp a Tenancy Agreement in Singapore
Tenancy agreements can be stamped electronically through IRAS’s myTax Portal. IRAS also provides e-kiosks at its Taxpayer & Business Service Centre.
Below are the process of stamping through IRAS myTax Portal.
Using IRAS myTax Portal
- Log in to myTax Portal’s Stamp Duty service.
- Select the service for stamping a lease or tenancy document.
- Enter the required details from the tenancy agreement.
- Review the stamp duty amount.
- Submit the stamping record and make payment.
- Download the Stamp Certificate once the payment has been completed.
The person submitting the document does not necessarily have to be the landlord. If the tenant is responsible for the duty, the tenant can handle the process. A landlord, property agent or lawyer can also submit the stamping record on the tenant’s behalf.
Information You Need to Stamp in a Tenancy Agreement
You will need the information contained in the tenancy agreement to complete the stamping process.
This generally includes details such as:
- The landlord and tenant
- The property being rented
- The tenancy period
- The agreed rent
- Other charges or considerations relevant to the lease
The important thing is to use the information from the actual agreement. The stamp duty calculation is based on the terms of the lease, and IRAS may take the market rent and certain additional charges into account when determining the Average Annual Rent.
Landlord checklist: Signed tenancy agreement → confirm who pays → submit stamping record → pay stamp duty → obtain Stamp Certificate → keep it with the tenancy agreement.
Can Rental Stamp Duty Be Claimed as a Rental Expense?
A landlord may usually claim qualifying stamp duty as a rental expense if the landlord paid it for obtaining, renewing, or extending a lease. However, the claim is not automatic.
IRAS applies conditions relating to the purpose and length of the lease, and some business-related or sale-and-leaseback transactions are excluded.
For residential properties, the landlord must also choose between claiming actual expenses and the 15% standard expense allowance.
Rental Records Landlords Should Keep
If you choose to claim rental expenses, you should retain supporting documents such as tenancy agreements, bank mortgage statements, invoices and receipts for at least five years for verification purposes.
It is sensible to keep the following in one property file:
- Signed tenancy agreements
- Stamp Certificates
- Records of rent received
- Property tax records
- Mortgage interest statements, where relevant
- Agent invoices
- Advertising costs
- Repair and maintenance invoices
- Documents relating to lease renewals or variations
Managing a rental property involves more than collecting rent and keeping track of paperwork. Property management services can take care of many of the ongoing tasks involved in running a rental property.
HDB vs Condo vs Landed Rental: Does Stamp Duty Differ?
The basic stamp duty rules for a rental agreement usually apply regardless of whether you are renting out an HDB flat, condo or landed property.
The lease period and rental amount are the main factors used to calculate lease duty, regardless of the property type.
Let’s say you rent out two properties for the same amount and on the same terms. The basic lease duty calculation would generally be the same even if one is an HDB flat and the other is a condo.
What can differ is everything around the rental arrangement.
IRAS also notes that if an HDB owner is renting out only part of the flat while continuing to live there, the tenancy agreement should be stamped as “partially let” so the owner-occupier property tax treatment can continue to apply.
Stamp duty is one of the costs that can affect the returns from a rental property. If you are assessing whether a property makes financial sense as a rental, it is also worth looking at its rental yield and how much income you can expect relative to the property’s cost.
If you are still assessing whether a particular property makes sense as an investment, Proptiply™ professional personalized property consulting service can help you evaluate the wider numbers and considerations before making a decision.
Rental Stamp Duty vs Other Property Taxes and Costs
Rental stamp duty is only one of several property-related taxes a landlord may encounter. The main difference is what triggers each one.
| Tax or cost | What triggers it? | Who it generally concerns |
| Rental stamp duty | A dutiable lease or tenancy agreement | Landlord or tenant, depending on the agreement and applicable rules |
| Property tax | Owning a property | Property owner |
| Income tax on rental income | Receiving rental income | Landlord |
| Buyer’s Stamp Duty (BSD) | Buying a property | Buyer |
| Additional Buyer’s Stamp Duty (ABSD) | Buying certain residential properties | Buyer, depending on the buyer’s profile and property |
| Seller’s Stamp Duty (SSD) | Selling certain residential properties within the applicable holding period | Seller |
IRAS treats these as different types of taxes with different rules.
For example, BSD and ABSD relate to buying property, while SSD may apply when a property is sold within the relevant holding period. Lease duty, by contrast, applies to dutiable lease and tenancy documents.
You may encounter purchase-related stamp duties when you buy the property, lease duty when you rent it out, and income tax on the rental income you receive.
A prospective landlord also needs to understand the broader economics of buying and holding a residential investment property. A residential property investment programme can provide a more structured introduction to the process.
Rental stamp duty is a relatively straightforward part of renting out a property, as long as you know what to check. Confirm who is responsible for paying, make sure the tenancy agreement is stamped within the required timeframe, and keep the Stamp Certificate with your rental records.
It can be a handful to track these costs, but it can help you see whether your property leaves you with positive cash flow after expenses. See our guide to cash flow positive property in Singapore for a closer look at how landlords can assess this.
It’s always helpful to also consider mortgage costs, property tax, maintenance, vacancies and other expenses for a clearer outlook on how much the property can actually generate. You can see our guide to generating passive income from residential property in Singapore.
