If you are renting a property in Singapore, you are likely familiar with the concept of stamp duty. Stamp duty is a tax on legal documents that are used in transactions such as property purchases or leases. In this article, we will explore the concept of supplemental tenancy agreement stamp duty and what it means for tenants and landlords.
A supplemental tenancy agreement is a document that is used to amend an existing tenancy agreement. It is commonly used when there are changes that need to be made to the terms and conditions of the original agreement. This could include changes to the rental amount, the duration of the lease, or other terms that were not initially agreed upon.
When a supplemental tenancy agreement is prepared, it is subject to stamp duty just like the original tenancy agreement. This means that both the tenant and the landlord are required to pay stamp duty on the document.
The amount of stamp duty that is payable on a supplemental tenancy agreement is calculated based on the amount of rent that is payable during the period covered by the agreement. The stamp duty is calculated at a rate of $0.20 for every $100 or part thereof, of the rent payable for the entire period of the supplemental agreement.
For example, if the rent payable under the original tenancy agreement was $2,000 per month for a period of 12 months, and the supplemental tenancy agreement covers an additional 6 months with an increased rent of $2,200 per month, the total rent payable for the entire period covered by the supplemental agreement would be $15,200. The stamp duty payable on the supplemental agreement would therefore be $30.40.
It is important for tenants and landlords to be aware of the stamp duty requirements for supplemental tenancy agreements. Failure to pay the required stamp duty can result in penalties and legal consequences.
In conclusion, supplemental tenancy agreement stamp duty is a tax that is payable when there are changes to the terms and conditions of an existing tenancy agreement. Both tenants and landlords are required to pay stamp duty on the document, which is calculated based on the rent payable for the entire period covered by the supplemental agreement. It is important to comply with the stamp duty requirements to avoid penalties and legal consequences.