6% on tenancy agreement… How FIRS will charge stamp duty

The Federal Inland Revenue Service (FIRS) says landlords will serve as collection agents for the six percent stamp duty that will be charged on tenancy and lease agreements.

The tax agency provided a breakdown of how stamp duty collection will be administered in a statement.

According to the breakdown, six percent will be charged as stamp duty on tenancy and lease agreements while certificates of occupancy will attract a flat rate of N1,000.

The FIRS said it is prepared to reposition stamp duties and make it the next major revenue source for Nigeria in the face of dwindling oil revenue.

“The burden of payment of stamp duty whether fixed or ad-valorem is that of the beneficiaries of a contract or money deposits banks customers who transfer an amount of N10,000 and above from his account to another customer’s account,” the statement read.

“Banks, MDAs, landlords and other executors of chargeable transactions are only agents of collection whose duties are to ensure that the stamp duties due on each transaction are remitted to the government’s account as when due.”

In an earlier statement, FIRS had said the new adhesive stamp duty is necessary to give the instruments the force of law and make them legally binding on all parties involved in such transactions.

Here is a breakdown of how stamp duty will be charged on different instruments.