Not content with the stamp duty imposed on Nigerians with Bank accounts across the country, the Federal Government has announced the imposition of another stamp duty on tenancy agreements and certificates of occupancy through the Federal Inland Revenue Service (FIRS).
The Director of Communications and Liaison for the FIRS, Mr. Abdullahi Ahmad announced the new development in Abuja on Thursday.
The Director Urged Nigerians to authenticate documents regarding rent or lease for homes and offices as well as Occupancy Certificates with the new FIRS Adhesive Stamp duty. Other common business-related transaction instruments are also subject to the new stamp duty policy.
The FIRS said the stamp duty was necessary to give the instruments the force of law, making them legally binding on all parties involved.
See Also: It is Not Our Duty to Reveal Boko Haram Sponsors – Nigeria Army
The Organisation said further that the policy was adopted at the official inauguration of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties in Abuja.
According to a statement issued by the executive chairman of the FIRS, Mr. Muhammad Nami;
“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.”