The twelve terms
- Size: net lettable, or approximate built-up.
- Rent: is there a service charge, or turnover rent? Plus GST if the landlord is registered.
- Lease term, and any option to renew.
- Commencement date.
- Rent-free period for fitting out.
- Security deposit and advance rent.
- Stamp duty: usually the tenant's.
- Utilities: own account, sub-meter, or included.
- Provisions: what fittings come with the unit.
- Maintenance: who keeps what in repair.
- Other fees: legal and administrative.
- Permitted use and reinstatement: what it may be used for, and how it is handed back.
Lease stamp duty
Stamp duty is 0.4% of the total rent for a lease of up to four years. Service charge counts; GST does not. On S$10,440 a month for three years: 0.4% × S$10,440 × 36 = S$1,503. The lease must be stamped within 14 days of signing.
0.4%of the total rent, for a lease of up to 4 years
14 daysto stamp the lease after signing
9%GST on rent, only if the landlord is registered
Source: IRAS, stamp duty on leases.
In the agreement, read
| Part | Look for |
|---|---|
| Permitted use | It must match the approved use; the tenant gets licences at its own cost |
| Fitting out | The rent-free period; the landlord's approval of works |
| Repairs | Tenant: interior and air-conditioning. Landlord: structure and roof |
| Early exit | Usually none: the whole term's rent is owed |
| Renewal | The notice needed; "prevailing market rent" or a formula |
| Reinstatement | Back to bare, or as taken over |
On a large or unusual lease, have a lawyer read it.
Sources
- IRAS, stamp duty on leases: iras.gov.sg
- IRAS, GST on real estate: iras.gov.sg(gst)/specific-business-sectors/real-estate
- IRAS, GST registered business search: mytax.iras.gov.sg