Stamp Duty on Leases

4.14 Presently, all property leases are levied with stamp duty. To reduce the tax burden on families living in rental flats, and the inconvenience to businesses and the general public, I have decided to exempt from stamp duty leases with annual rents that do not exceed $1,000. This change will benefit some 3,500 households that start a new lease or renew the lease of 1- and 2-room HDB rental flats each year. The exemption will also cover the fixed duty levied on 99-year leases that some 32,000 households enter into each year when they purchase flats from HDB. About 30% of all leases will now be exempted. Households and businesses can expect to save about $340,000 a year from 1 April 2003 onwards.