The short answer
On a commercial shophouse lease the landlord pays property tax and income tax on rental profits, a GST-registered landlord charges GST on rent (9% since 1 January 2024), and lease stamp duty is assessed by IRAS with the split negotiated. Tenants should also budget for utilities, fit-out and reinstatement.
- GST
- 9% on rent if landlord is registered
- Property tax
- Landlord; check IRAS rates
- Stamp duty
- IRAS assessed; split negotiated
- Tenant extras
- Utilities, fit-out, reinstatement
Last reviewed 2026-11-05. Rules and fees change; confirm with the relevant agency before committing to a lease or fit-out.
Who bears which cost
| Cost | Usually borne by | Notes |
|---|---|---|
| Property tax | Landlord | Assessed on annual value; check IRAS for current rates |
| GST on rent | Tenant pays, landlord collects | Only if landlord is GST-registered; rate 9% since 1 Jan 2024 |
| Lease stamp duty | Negotiated | Assessed by IRAS; e-Stamping |
| Income tax on rental income | Landlord | After allowable deductions |
| Utilities and service charges | Tenant, per lease | Check metering arrangements |
| Fit-out and reinstatement | Tenant, per lease | Conservation features can raise cost |
| Agent fees | Per agreement | Confirm who pays before viewing |
Budgeting as a tenant
- Compare offers on a total-cost basis including GST and incentives.
- Ask for the security deposit amount and refund terms in writing.
- Allow for licence fees and professional fees for approvals.
- Price reinstatement at lease end into the business case.
Tax rates change. Confirm current figures with IRAS, not a fixed number online.
Budgeting as a landlord
Model net yield after property tax, maintenance, vacancy and income tax. See our guide to rental yield for shophouse landlords for the formula and a worked example.
Sources and where to verify
See also our shophouses for rent hub and the commercial shophouse permitted uses overview.