The Federal Inland Revenue Service (FIRS) has called on landlords and property agents to ensure they charge 6 percent Stamp Duty on all tenancy and lease agreements they enter into with all renters and remit the same promptly to the Service in line with the provisions of the Stamp Duty Act.
Chairman of the Service, Mr. Muhammad Nami stated this following the recent release and circulation of a stamp duty clarification guide.
According to him, property-related transactions like tenancy or lease agreement fall under the Ad Valorem category of the stamp duty which attracts 6 percent duty payable in percentage of the total value or sum of the tenancy or lease.
Clarifying the position of the Service on the Act in a statement yesterday, Director, Communications and Liaison Department, Abdullahi Ahmad, maintained 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 fell on the landlord or agent in charge of the property for lease or rent.
He quoted the Chairman as stressing that the party making the payment shall have the obligation to account for the applicable stamp duties.
The 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%, amongst others.