FIRS mandates landlords, agents to charge 6% stamp duty on tenancy, lease agreement

Landlords and property agents in Nigeria now have the backing of the law to charge a 6% stamp duty on every agreement executed with clients for lease and tenancy purpose, the Federal Inland Revenue Service (FIRS) declared Wednesday.

Money Deposit Banks (MDBs) will collect the duties at the behest of the FIRS and make remittance to its account domiciled with the central bank, a statement signed by the fiscal authority head, Muhammad Nami said.

Government is relentlessly aggressive about its revenue ambition, with the announcement a couple of weeks back of the plan to make it next to oil as the country’s biggest revenue earner.

“The MDBs, MDAs, landlords, and other executors of chargeable transactions are only agents of collections whose duties are to ensure that the stamp duties due on each transaction is remitted to the Federal or State Governments Stamp duties account as and when due.

Read also: FIRS shifts deadline for tax debt payment to August ending

“It is the responsibility of MDAs, MDBs, companies, landlords, executors etc to ensure that service providers, contractors, tenants, etc, pay stamp duties due on agreements, receipts and other dutiable instruments,” the document said.

Abdullahi Ahmad, Director of Communications and Liasion unit of the FIRS noted that the move was crucial in order to avert breach of the Stamp Duty Act, adding that tenancy or lease belonged to the ad valorem category of the stamp duties chargeable at 6 per cent of tenancy or lease value.

According to him, the burden of paying the stamp duty would be borne by tenants or renters, who are the beneficiaries of the lease or tenancy.

“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,” Mr Ahmad said.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now