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FIRS introduces stamp duty for rent agreements, C of O

FIRS introduces stamp duty for rent agreements, C of O
July 03
13:04 2020
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The Federal Inland Revenue Service (FIRS) says stamp duty will now be paid on house rent and certificate of occupancy (C of O).

Abdullahi Ahmad, director of FIRS communications and liaison department, urged all residents to ensure that all rent or lease documents and C of O are subject to authentication with the new FIRS adhesive stamp duty.

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

The official said the new FIRS adhesive stamp duty came into being at the official inauguration of the inter-ministerial committee on audit and recovery of back years stamp duties that recently held in Abuja.

Ahmed quoted Muhammad Nami (pictured), the FIRS executive chairman, 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.

“While 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.

“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.”

Ahmad advised that all members of the public ensure that all the listed instruments have the new FIRS adhesive stamp affixed or stamped on them as this would legalise such instruments.

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