Nigeria authories Introduces stamp tax on house rent agreement, c of o and others

Nigeria authories Introduces stamp tax on house rent agreement, c of o and others

Reports reaching Efogator Media news desk says the Federal Inland Revenue Service (FIRS) has said that henceforth, stamp tax are going to be paid on house rent and Certificate of Occupancy (C of O) in line with its new adhesive duty.

The FIRS Director, Communications and Liaison Department, Mr Abdullahi Ahmad, made this known during a statement in Abuja on Thursday.

Ahmad urged Nigerians and other residents to make sure that documents concerning rent or lease agreements for his or her homes or offices, C of O also as an inventory of other common business-related transaction instruments are subjected to authentication with the new FIRS Adhesive stamp tax.

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He said this was necessary so as to offer the instruments the force of law and make them legally binding on all parties involved in such transactions.

He added that the new FIRS Adhesive stamp tax came into being at the official inauguration of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties recently in Abuja.

Ahmed quoted the chief Chairman of FIRS, Mr Muhammad Nami as saying “chargeable transactions under the Stamp Duties Act as amended within the Finance Act 2019 are in two categories – Fixed Duty Instruments and Ad-Valorem Instruments.

“The following are the chargeable transactions within the Fixed Duty Instruments category, Power of Attorney (PoA); Certificate of Occupancy (C of O), Proxy form; Appointment of Receiver, Memorandum of Understanding (MoU), venture Agreements (JVA), Guarantor’s form, and Ordinary Agreements Receipts.

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

“Stamp duty is essentially charged in two forms, either ad val where duty payable may be a percentage of the consideration on an instrument or a hard and fast sum regardless of the consideration on dutiable instrument or document.”

According to him, the FIRS therefore, enjoins members of the general public to form sure that any of the above-listed Instruments they provide or receive within the course of their business or official transactions have the new FIRS Adhesive stamp tax affixed or stamped on them. This, he noted would authenticate or legalize such Instruments.

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