Mr. Muhammad Nami, Executive chairman of the Federal Inland Revenue Service recently released a stamp duty clarification guide saying that all landlords and property owners are to remit 6% stamp duty charge on all tenancy rentals, lease agreements so as not not to violate the stamp duty Act.
According to Mr. Muhammad:
“In any case, the party making the payment shall have the obligation to account for the applicable stamp duties.”
In a statement released on Wednesday by Abdullahi Ismaila Ahmad, Director, Communications FIRS he said that the burden of payment of the 6 per cent lies on the beneficiary of the tenancy or lease agreement, whom the Stamp Duty Act identified as the tenant or renter, while the responsibility of collection and remittance falls on the landlord or agent in charge of the property for lease or rent.
”Some other Stamp Duty types and their rates are Appraisement or Valuation of Property, 1.5 percent; Certificate of Occupancy, Partnership, N1,000 flat rate; Gift of Land, 1.5 percent; Legal Mortgage, 0.375 percent; Legal Mortgage (Upstamping), 0.375 percent, and Deed of Conveyance or Transfer on Sale of Property, 1.5 percent
Others are Gift of Land, 1.5 percent; Memorandum of Understanding (Related to Land, Sales, Joint Venture, Surrender, Subdivision Agreements), 1.5 percent; Power of Attorney (Irrevocable/Land Related), 1.5 percent; and Sales Agreement, 1.5 percent.