Previously, Centre O talked about what is stamp duty and how to submit the stamp duty. In this blog, Centre O is going to talk about the duty rates, penalty and show you how to calculate the stamp duty.
Stamp duty on tenancy agreements is calculated at rates. And the rate is vary with the term of the tenancy as follows: –
|Term||Stamp Duty Rate|
|Not defined or is uncertain||0.25% of the yearly or average yearly rent|
|Does not exceed 1 year||0.25% of the total rent payable|
|Exceeds 1 years but not exceed 3 years||0.5% of the yearly or average yearly rent|
|Exceed 3 years||1% of the yearly or average yearly rent|
|Key money, construction fee etc.|
mentioned in the tenancy agreement
|4.25 of the consideration if rent is also payable under the tenancy agreement. Otherwise, same duty as for a sale of immovable property|
|Duplicate or counterpart||$5 each|
Penalty for Late Stamping
If you forgot or late to stamp. Then you are subject to have a penalty payment as below: –
|Not exceeding 1 month||2 times the amount of stamp duty|
|Exceeding 1 month but less than 3 months||4 times the amount of stamp duty|
|Any other case||10 times the amount of stamp duty|
How to calculate the stamp duty
In order to show you a clear picture of the calculation, we have drafted some examples. Yet, the document is stamping within 30 days from the date of signing. Otherwise, there will be penalties.
|1/ Fixed Rent||8 months agreement with monthly rental $5000 Calculation: $5000x8x0.25% = $100|
|2/ Fixed Rent with duplicate||24 months agreement with monthly rental $5000 + 2 copies Calculation: $5000x24x0.5% +$5 = $605|
|3/ Varied Rent||48 months agreement + 2 copies First 24 months: $12,000 Last 24 months: $15,000 ($12000×24+$15000×24)/4 x 1% +$5 = $1625|
|4/ Rent-Free Period||24 months agreement with 2 months rent-free period + 2 copies Monthly rental: $10,000 ($10000×22)/2x 0.5% +$5 = $555|
For further information, please contact us.
You may want to read: CALCULATE STAMP DUTY RATES FOR COMPANY SHARE TRANSFER