The Federal Inland Revenue Service (FIRS) has mandated landlords and property agents to ensure that they charge 6 per cent Stamp Duty on all tenancy and lease agreements they enter into with all renters and remit same promptly to the Service in order not to run foul of the Stamp Duty Act.
FIRS’ position is sequel to the recent release and wide 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 6 per cent duty payable in percentage of the total value or sum of the tenancy or lease.
A statement issued Wednesday by the Director, Communication, FIRS, Abdullahi Ismaila Ahmad, said the burden of payment of the 6 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 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), 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.