Accommodation Seekers, Landlords Now To Pay Stamp Duties On House Rent Agreements, C Of O

Nigerians who are seeking accommodation and those who have built their houses are now to pay stamp duties on house rents agreements and certificates of occupancy.

The Federal Inland Revenue Service (FIRS) announced this on Thursday, in a statement in Abuja, the News Agency of Nigeria (NAN) reported.

Nigerians are currently paying stamp duties on their bank accounts and other goods, with many already complaining about the huge money deducted from their bank accounts every month.

The new policy by the FIRS was announced in the statement issued by Mr Abdullahi Ahmad, the FIRS Director, Communications and Liaison Department.

The statement asked Nigerians and other residents to ensure that documents pertaining to rent or lease agreements for their homes or offices, Certificates of Occupancy as well as a list of other common business-related transaction instruments were subject to authentication with the new FIRS Adhesive Stamp duty.

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

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

“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.

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

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“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.”

According to him, the FIRS therefore, 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.

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