The Federal Inland Revenue Service (FIRS) has directed landlords and property owners and agents to ensure that they charge six percent stamp duty on all tenancy and lease agreements.
FIRS’ position is contained in a recent circulation of a stamp duty clarification guide by its Executive Chairman, Mr. Muhammad Nami.
According to Nami, property-related transactions like tenancy or lease agreement fall under the Ad Valorem category of the stamp duty which attracts six percent duty payable in percentage of the total value or sum of the tenancy or lease.
He said 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 while the responsibility of collection and remittance falls on the landlord or agent in charge of the property for lease or rent.
Nami stressed that “in any case, the party making the payment shall have the obligation to account for the applicable stamp duties.”
Some other Stamp Duty types and their rates are Appraisement or Valuation of Property, 1.5 per cent; Certificate of Occupancy, Partnership, N1,000 flat rate; Gift of Land, 1.5 per cent; Legal Mortgage, 0.375 per cent; Legal Mortgage (Upstamping), 0.375 per cent, and Deed of Conveyance or Transfer on Sale of Property, 1.5 per cent
Others are Gift of Land, 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.
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