Economy

Nigerian Government imposes stamp duty on house rent

The Federal Govrnment has made it mandatory that henceforth stamp duty must be paid on every house rent agreements.

Nigerians are now required to pay stamp duty on each house rent agreements as well as Certificate of Occupancy in accordance with a recent charge by the Federal Inland Revenue Service.

Abdullahi Ahmad, the spokesman for the FIRS made this known in a press release in Abuja on the 2nd of July.

Ahmad statef that other popular business-related transaction appliances should also be subjected to stamp duty

He urged Nigerians to ensure that all documents relating to lease or rent agreements for their offices or homes are subjugated to certification with the recent FIRS adherent stamp duty.

He stressed that the recent FIRS adherent stamp duty is crucial in order to give the documents the strength of law and render them lawfully binding on both parties that are involved in such agreements.

The spokesman stated that the recent FIRS adherent stamp duty was newly initiated by the government.

The new FIRS Adhesive Stamp Duty was launched in Abuja on Tuesday, June 30, 2020 at the official inauguration of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties.

In his statement released to media houses, the Executive Director, FIRS, Mr. Muhammad Nami, said that “chargeable transactions under the Stamp Duties Act as amended in the Finance Act 2019 are in the Finance Act 2019 are in two categories – Fixed Duty Instruments and Ad-Valorem Instruments.”

In his words: “The following are the chargeable transactions in the Fixed Duty Instruments category: Power of Attorney (PoA); Certificate of Occupancy (C of O); Proxy form; Appointment of Receiver; Memorandum of Understanding (MoU); Joint Venture Agreements (JVA); Guarantor’s form; and Ordinary Agreements Receipts.”

“While ad-Valorem Instruments chargeable under the Stamp Duties Act are Deed of Assignment; Sales Agreement; Legal Mortgage or Debentures; Tenancy or Lease Agreements; Insurance Policies; Contract Agreements; Vending Agreement; Promissory Notes; Charter-Party; and Contract Notes.

“Stamp duty is basically charged in two forms, either ad valorem where duty payable is a percentage of the consideration on an instrument or a fixed sum irrespective of the consideration on dutiable instrument or document.”

The FIRS boss enjoins members of the public to make sure that any of the above-listed Instruments they give or receive in the course of their business or official transactions have the new FIRS Adhesive Stamp Duty affixed or stamped on them to authenticate or legalize such Instruments.

The statement further stressed that the new FIRS Adhesive Stamp Duty is available in all FIRS Nigerian offices nationwide.

About the author

Joseph Chukwuma Oputa

Joseph Chukwuma Oputa is the Managing Editor of Maslow Businessnews and Physicians News publications published by Maslow Business News Publications, Lagos, Nigeria.

Joseph Oputa is a proud Alumnus of the prestigious Nigerian Institute of Journalism, Lagos and Federal Polytechnic, Bida, Niger State.

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