Stamping of Agreement in Singapore: A Comprehensive Guide
In Singapore, stamping of agreements is crucial to ensure the legality and enforceability of the contract. The stamping process involves paying a fee to the Inland Revenue Authority of Singapore (IRAS) to obtain a stamp certificate that denotes the legal status of the agreement. In this article, we will take a closer look at the stamping of agreement process in Singapore and what you need to know.
What is a Stamp Duty?
A Stamp Duty is a tax that is imposed on various legal documents such as contracts, leases, and conveyances of property. In Singapore, the Stamp Duty is regulated by the IRAS. This authority also governs the stamping process of agreements and other documents.
Why is Stamping of Agreement Important?
Stamping of agreement is important because it gives the document a legal status and makes it enforceable in court. It also serves as evidence of the transaction and provides protection to all parties involved. The document can be used as evidence in case of a dispute and can be presented in court to prove your side of the argument.
When Should an Agreement be Stamped?
In Singapore, a document or agreement needs to be stamped within 14 days from the date of execution or date of receipt in Singapore, whichever is earlier. It is important to note that the stamping process should be completed before the agreement is used or executed in court.
What Documents Need to be Stamped?
A variety of documents and agreements need to be stamped, including tenancy agreements, sale and purchase agreements, and loan agreements. Other documents such as gift deeds and company incorporation documents may also require stamping. It is essential to check with the IRAS to determine whether your document requires stamping.
How Much is the Stamp Duty?
The stamp duty fee varies depending on the document type, transaction value, and other factors. The IRAS provides a stamp duty calculator on its website to help you determine the amount of the stamp duty fee. You can also consult with a legal professional or tax specialist to get a better idea of the expected fee.
How to Stamp an Agreement?
To stamp an agreement, you need to submit the original document to the IRAS. The authority will then assess the document and calculate the stamp duty fee. You can make the payment for the stamp duty fee through several methods, including electronic payment and cheque. After the payment is made, the IRAS will issue a stamp certificate, and the document will be deemed legally stamped.
Stamping of agreement is an integral part of the legal process in Singapore. It provides legal status and enforceability to the agreement and protects the interests of all parties involved. It is essential to follow the correct stamping process and ensure that the document is stamped within the prescribed time frame. By doing so, you can ensure that your agreement is legally binding and can be enforced in court if necessary.