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Paper 2 · Lesson 5 — Collective Sale, Private and HDB Leasing, Foreign-Worker Housing, Lease Stamp Duty and AML/CFT

Leasing GST

GST in a leasing / agency context: residential rent exempt vs commercial rent and agency commission standard-rated, the registration threshold, and the current standard rate. (Distinct from L8 `gst-on-property`, which is GST on a sale; keep leasing-GST here.).

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Question 1

An agent explains to a first-time landlord how GST bites, or does not, on a plain residential lease of his condominium, and separately on the commission she will charge for finding the tenant. The landlord assumes that if the rent is free of GST, so is her fee. Which statement is correct?

  1. A. Both the rent on his residential unit and her commission for finding the tenant are standard-rated for GST at the usual rate.
  2. B. Both the rent on his residential unit and her commission for finding the tenant are exempt from GST in the ordinary way.
  3. C. The rent on his bare residential unit is exempt from GST, while her commission for finding the tenant is standard-rated.
  4. D. The rent on his residential unit is standard-rated for GST, while her commission for finding the tenant is exempt.
Show the answer and full explanation

Answer: C

The rule. The rent on a bare residential lease is exempt from GST. The agent's commission, being a supply of agency services, is standard-rated. The residential exemption attaches to the rent, not to the professional's fee.

Why C is correct. Rent exempt, commission standard-rated.

The other options.

  • B exempts the commission too; the exemption does not reach agency fees.
  • A standard-rates the rent; residential rent is exempt.
  • D reverses both.

Exam note. Residential rent = exempt; agent's commission = standard-rated. The exemption follows the rent, not the fee.

The rent on a bare residential lease is exempt from GST →

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