Landlords and property agents have been asked to charge six percent Stamp Duty on all tenancy and lease agreements by the Federal Inland Revenue Service (FIRS). Landlords and property agents were given the directive by the tax agency's Director, Communications and Liaison Department Abdullahi Ahmad on Wednesday July 22. They are expected to remit such collections to FIRS “so that they do not run foul of the Stamp Duty Act.” Ahmad said; “Property-related transactions like tenancy or lease agreement fall under the Ad Valorem category of the stamp duty which attracts six per cent duty payable in percentage of the total value or sum of the tenancy or lease. "The burden of payment of the six per cent lies on the beneficiary of the tenancy or lease agreement, whom the Stamp Duty Act identified as the tenant or renter.“The responsibility of collection and remittance fall on the landlord or agent in charge of the property for lease or rent. The party making the payment shall have the obligation to account for the applicable stamp duties.” Other Stamp Duty types and their rates include Appraisement or Valuation of Property , 5 per cent; Certificate of Occupancy and Partnership, N1,000 flat rate; Gift of Land, 1.5 per cent and Legal Mortgage, 0.375 per cent, Legal Mortgage (Upstamping), 0.375 per cent; Deed of Conveyance or Transfer on Sale of Property, 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. The Stamp Duties payment is backed by the Stamp Duties Act (SDA) 1939 as amended by numerous Acts and various resolutions contained in the Laws of the Federation of Nigeria. The SDA also provides a list of documents in its schedule and the duty payable on each.The post Tenants in Nigeria to pay 6 percent stamp duty - FIRS appeared first on Linda Ikeji Blog.from Linda Ikeji's Blog https://ift.tt/30DBaeH
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