Landlords and property specialists have been approached to charge six percent Stamp Duty on tenancy and lease agreements by the Federal Inland Revenue Service (FIRS).
Landlords and property agents were given the order 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.”
Ahmad said;
“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.
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“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 incorporate Appraisement or Valuation of Property , 5 percent; Certificate of Occupancy and Partnership, N1,000 level rate; Gift of Land, 1.5 percent and Legal Mortgage, 0.375 percent, Legal Mortgage (Upstamping), 0.375 percent; Deed of Conveyance or Transfer on Sale of Property, 1.5 percent; Memorandum of Understanding (Related to Land, Sales, Joint Venture, Surrender, Subdivision Agreements, 1.5 percent; Power of Attorney (Irrevocable/Land Related), 1.5 percent and Sales Agreement, 1.5 percent.
The Stamp Duties installment is upheld by the Stamp Duties Act (SDA) 1939 as corrected by various Acts and different goals contained in the Laws of the Federation of Nigeria. The SDA likewise gives a rundown of records in its timetable and the obligation payable on each.
