The Federal Inland Revenue Service (FIRS) has asked landlords and property agents to charge six per cent stamp duty on all tenancy and lease agreement
The Federal Inland Revenue Service (FIRS) has asked landlords and property agents to charge six per cent stamp duty on all tenancy and lease agreements they enter into with all leases and remit same promptly to the Service.
Mr Abdullahi Ahmad, Director, Communications and Liaison Department of the service, said doing so was necessary so that they would not run foul of the Stamp Duty Act. He said the admonition came following the recent release and wide circulation of a stamp duty clarification guide by FIRS Executive Chairman, Mr Muhammad Nami.
He stated that property-related transactions like tenancy or lease agreement fell under the Ad Valorem category of the stamp duty which attracted six per cent duty payable in percentage of the total value or sum of the tenancy or lease.
According to FIRS, 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. Also, the responsibility of collection and remittance fall on the landlord or agent in charge of the property for lease or rent.
“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) and 0.375 per cent.
“Others are deed of Conveyance or Transfer on Sale of Property, 1.5 per cent: 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” he said.
