Stamp Duty: Landlords, property agents must collect, remit 6% on tenancy, lease agreement – FIRS 

FIRS new spirit of teamwork

EHIME ALEX, Lagos 

The Federal Inland Revenue Service (FIRS) has enjoined 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 so that they do not run foul of the Stamp Duty Act.

FIRS said in a statement on Wednesday signed by its Director, Communications and Liaison Department, Abdullahi Ismaila Ahmad.

According to the statement, the admonition came following recent release and wide circulation of a stamp duty clarification guide by its Executive Chairman, Mr Muhammad Nami.

Nami was quoted saying that 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.

Explaining that 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 and the responsibility of collection and remittance fall on the landlord or agent in charge of the property for lease or rent.

Nami stressed that “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%; Certificate of Occupancy, Partnership N1,000 flat rate; Gift of Land, 1.5%; Legal Mortgage, 0.375%; Legal Mortgage (Upstamping), 0.375%; Deed of Conveyance or Transfer on Sale of Property, 1.5%; Gift of Land, 1.5%; Memorandum of Understanding (Related to Land, Sales, Joint Venture, Surrender, Subdivision Agreements, 1.5%; Power of Attorney (Irrevocable/Land Related), 1.5%; and Sales Agreement, 1.5%”, the statement added.

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