As a tenant or landlord in Singapore, one important aspect of renting a property is the payment of Stamp Duty for the tenancy agreement. Stamp Duty is a tax imposed by the government on certain documents, including rental agreements, to make them legally binding. But the question that arises is, who should pay for the Stamp Duty for the tenancy agreement in Singapore?
According to the Stamp Duties Act, the tenant is primarily responsible for paying the Stamp Duty for the tenancy agreement in Singapore. However, this can be negotiated between the tenant and the landlord during the negotiation process. It is common practice for the tenant to bear the cost of Stamp Duty since they benefit from the use of the property throughout the lease period.
The Stamp Duty fee for a tenancy agreement in Singapore is calculated based on the rent amount and the length of the lease. For a lease period of up to 4 years, the Stamp Duty fee is 0.4% of the total rental amount. For a lease period of more than 4 years, the Stamp Duty fee is 0.4% of the total rental amount for the first 4 years, plus an additional 0.2% for each subsequent year.
If the tenant and landlord have agreed to a shorter-term lease of less than 4 years, the Stamp Duty fee will be lower than if they had agreed to a longer lease. It is important to note that regardless of the lease period, the Stamp Duty fee must be paid within 14 days of the signing of the tenancy agreement, failing which late payment penalties and interest may be imposed.
In some cases, the landlord may agree to share the cost of Stamp Duty with the tenant. However, this is usually done on a case-by-case basis, and the amount of sharing depends on the negotiation between the tenant and landlord.
In conclusion, while the primary responsibility of paying Stamp Duty for the tenancy agreement in Singapore falls on the tenant, it is negotiable between the tenant and landlord. It is important to ensure that the Stamp Duty fee is paid within the stipulated time frame to avoid any late payment penalties and interest. And as always, it is advisable to seek professional advice before entering into any tenancy agreement in Singapore.