Landlords and property agents have been asked to charge six percent Stamp Duty on all tenancy and lease agreements by the Federal Inland Revenue Service (FIRS).
Landlords and property agents were given this directive by the tax agency’s Director, Communications and Liaison Department Abdullahi Ahmad on Wednesday July 22. They are expected to remit such collections to FIRS “so that they do not run foul of the Stamp Duty Act.”
“Property-related transactions like tenancy or lease agreement fall under the Ad Valorem category of the stamp duty which attracts six per cent duty payable in percentage of the total value or sum of the tenancy or lease.
“The burden of payment of the six per cent lies on the beneficiary of the tenancy or lease agreement, whom the Stamp Duty Act identified as the tenant or renter.
“The responsibility of collection and remittance fall on the landlord or agent in charge of the property for lease or rent. The party making the payment shall have the obligation to account for the applicable stamp duties.”
Other Stamp Duty types and their rates include Appraisement or Valuation of Property , 5 per cent; Certificate of Occupancy and Partnership, N1,000 flat rate; Gift of Land, 1.5 per cent and Legal Mortgage, 0.375 per cent, Legal Mortgage (Upstamping), 0.375 per cent; Deed of Conveyance or Transfer on Sale of Property, 1.5 per cent; Memorandum of Understanding (Related to Land, Sales, Joint Venture, Surrender, Subdivision Agreements, 1.5 per cent; Power of Attorney (Irrevocable/Land Related), 1.5 per cent and Sales Agreement, 1.5 per cent.
The Stamp Duties payment is backed by the Stamp Duties Act (SDA) 1939 as amended by numerous Acts and various resolutions contained in the Laws of the Federation of Nigeria. The SDA also provides a list of documents in its schedule and the duty payable on each.
You may be interested
Olujimi explains why she withdrawn from Ekiti PDP governorship primaryWebby - January 26, 2022
Spread the loveThe lawmaker representing Ekiti South Senatorial District in the National Assembly, Abiodun Olujimi, has given reasons why she…
FG uncovers secret bank accounts where civil servants stashed stolen fundsWebby - January 26, 2022
Spread the love The Federal Government says it has discovered more than 500,000 secret bank accounts allegedly used by civil…
Nigeria’s Defence Chief, Irabor canvasses media support for armed forcesWebby - January 26, 2022
Spread the loveThe Chief of Defence Staff (CDS), Gen. Lucky Irabor, has urged media organizations’ to support the Nigerian armed…