Stamp Duty

Question 1

what is stamp duty?

Answer 1

a tax on dutiable documents

Question 2

when do you stamp a document?

Answer 2

before it is signed.

however, if it has been signed before stamping, no penalty will be charged if stamped within 14 days (if signed in SG) or 30 days (if signed overseas)

Question 3

how is stamp duty for property calculated?

Answer 3

calculated based on average annual rent (AAR)

Question 4

for stamp duty, do you round up or round down the total sum ?

Answer 4

round down

Question 5

what are the 3 types of AAR and how are the rates calculated?

Answer 5

1. AAR less than $1k = exempted from stamp duty
2. AAR more than $1k, lease less than 4 years = 0.4% of total rent for the period of lease
3. AAR more than $1k, lease more than 4 years = 0.4% x 4 times the AAR for the period of lease