The practice of not stamping a lease is not an effective way to avoid paying taxes, but on the contrary, it may have a series of risks and consequences. Here are some factors to consider:
- Legal validity: An unstamped lease may be legally invalid, which means that in a tenancy dispute, the landlord cannot rely on the lease to assert rights or resolve the dispute.
- Tax obligations: Rental income may still be considered taxable income regardless of whether it is stamped or not. Tax evasion is an offence and can result in criminal fines and criminal charges if caught.
- Fines and consequences: Failure to stamp on time or failure to pay stamp duty may be considered an offence and owners may face fines of up to 10 times the original tax.
**Penalty Calculation**
if not later than 1 month, the penalty is 2 times the amount of stamp duty;
For more than 1 to 2 months, the penalty is 4 times the amount of stamp duty;
For more than 2 months, the penalty is 10 times the stamp duty,
In order to avoid unnecessary risks and legal consequences, the lease must be properly stamped and the corresponding stamp duty must be paid in accordance with the requirements of the law and regulations. This helps to ensure the legal validity of the lease and to comply with relevant tax regulations.
stamp duty = stamp duty
