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.
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“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.
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