Property owners and their agents have been directed to charge 6% Stamp Duty on all tenancy and lease agreements they enter into with their leases and remit promptly to the Federal Inland Revenue Service (FIRS).
FIRS Director of Communications and Liason Department, Abdullahi Ahmad made this known on Wednesday in Abuja.
The News Agency of Nigeria (NAN) reports that FIRS’ position follows the recent circulation of a stamp duty clarification guide by its Executive Chairman, 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 percent 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 falls on the landlord or agent in charge of the property for lease or rent.
He said: “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 percent: Gift of Land, 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.”