IRAS has updated its guidance on stamp duty for leases of immovable property in Singapore, with renewed emphasis on obtaining and retaining the Stamp Certificate.
The update is relevant to landlords, tenants, property managers and businesses entering into or modifying tenancy arrangements.
Key development
Stamp duty applies to instruments relating to leases of immovable property in Singapore. IRAS guidance confirms that lease duty is generally calculated by reference to the contractual rent or market rent, whichever is higher. The Stamp Certificate serves as formal evidence that the tenancy agreement has been stamped.
The updated guidance also directs landlords and tenants to IRAS materials explaining how the Stamp Certificate helps protect their respective interests, and provides a route to guidance on the e-stamping process.
Impact on accounting, tax and compliance
Tax compliance and documentation
Businesses should treat stamp duty compliance as part of the lease onboarding process. A signed lease should not be regarded as administratively complete until the applicable duty position has been assessed and, where duty is payable, stamping has been completed.
Audit and financial reporting evidence
For audit purposes, the Stamp Certificate can support the completeness of lease documentation and provide evidence that the entity has addressed statutory obligations associated with the tenancy agreement. Auditors may request the certificate when reviewing lease commitments, right-of-use asset records, rental expense recognition, or property-related controls.
Lease accounting and contract review
Although stamp duty itself does not determine lease classification or measurement under accounting standards, the underlying lease terms used for stamp duty assessment may overlap with accounting analysis. Variable rent, lease premiums, extensions and supplemental agreements should therefore be reviewed carefully to ensure consistency between tax compliance records and accounting conclusions.
Business operations and internal controls
Entities with multiple premises, retail outlets, warehouses, staff accommodation or co-working arrangements may need stronger controls over lease execution, stamping and document retention. This is especially important where lease arrangements are decentralised or negotiated by operational teams outside the finance function.
Practical issues
- Identifying dutiable arrangements: Some agreements described as licences may still attract stamp duty if they operate in substance as leases or are connected with a lease arrangement. Legal input may be needed where the distinction is unclear.
- Variable rent calculations: Leases with turnover rent, stepped rent, service charges or promotional charges may require estimates and careful interpretation of the stamp duty base.
- Lease modifications: Extensions, increases in rent, supplemental agreements and certain changes to lease terms may trigger additional stamp duty. Finance teams should review amendments before execution, not only after documents are signed.
- Record retention: The Stamp Certificate should be stored with the executed tenancy agreement and related correspondence. Businesses should ensure these records are accessible for audit, tax review and dispute management.
- Process ownership: Responsibility for stamping may sit with different parties depending on the lease arrangement. Clients should clearly assign responsibility between legal, finance, property management and external agents.
- System updates: Organisations using contract management or lease accounting systems should consider adding fields to capture stamping status, certificate references, payment dates and supporting documents.
Action points
Businesses should review current procedures for new leases and lease amendments to ensure stamp duty is assessed promptly and supporting certificates are retained. Finance and tax teams should also perform a targeted check of existing tenancy files to confirm that Stamp Certificates are available for material lease arrangements.
Where arrangements involve variable consideration, premiums, extensions, rent-free periods or licence-versus-lease uncertainty, clients should seek advice before finalising the documentation.
Source: IRAS, 16 June 2026.