If a room agreement is called a licence, read what the document actually provides before deciding whether stamp duty applies. IRAS says a licence may not be liable if it is intended only as a licence and does not act as a lease. It also says a licence agreement executed in connection with a lease is liable to stamp duty.
Gather the signed document and any linked terms. If it is unclear whether the arrangement acts as a lease or licence, IRAS suggests independent legal advice or submitting the document for adjudication. Check the appropriate route promptly if a deadline could apply.
- Read the agreement and any linked documents.
- Note the space, period, payments and access arrangements.
- Check whether another document creates or changes a lease.
- Verify the stamping responsibility and deadline if applicable.
- Use official guidance before relying on the title of the agreement.
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Read the arrangement as a whole
Open IRAS’s Renting a Property guide. It explains when lease duty is payable and how it treats licence agreements. Write down the rights the document gives, the space involved, the dates and the charges. Include any attached house rules or service agreement that changes how the space can be used.
| What to gather | What to check | Why it matters |
|---|---|---|
| Signed agreement | Property, space, parties and term | Identifies the arrangement being reviewed |
| Related documents | Link to another tenancy or lease | Helps establish whether the licence is connected to a lease |
| Payment terms | Rent or other charges and when they are due | Provides the figures for any duty assessment |
| Existing stamp record | Which document it covers | Helps avoid relying on a certificate for a different agreement |
A shared kitchen, housekeeping service or particular heading does not settle the tax treatment by itself. Give the adviser or IRAS the actual agreement and facts rather than asking about the label alone.
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Keep stamp duty and permission to occupy separate
If the agreement is a chargeable lease, check IRAS’s guidance on who should pay stamp duty and its property stamping deadlines. Keep the resulting certificate with the agreement it relates to.
Check the applicable HDB or URA rental rules independently. Stamping is a tax process and does not establish that the rental is permitted. A renter should verify the actual property and arrangement before transferring money.
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Worked example with two documents
A prospective tenant receives a document titled “room licence” and a separate agreement describing the rental term, monthly payment and room. The tenant asks which documents govern the arrangement and whether one is connected to the other. It seeks advice on the full set and checks the applicable stamping timeline before relying on an answer.
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Frequently asked questions
Does the word “licence” automatically remove stamp duty?
Check whether the agreement acts as a lease or was executed in connection with one. IRAS describes both situations in its guidance.
Can I ask IRAS to determine the treatment?
IRAS identifies adjudication as an option when the treatment is unclear and says adjudication fees apply. Check the current procedure and required documents.
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Next steps and official sources
Read the signed documents together, identify any link to a lease and check the applicable stamping treatment and deadline.