The Federal Inland Revenue Service (FIRS) has directed landlords and property agents to charge six per cent stamp duty on all tenancy and lease agreements. FIRS gave the directive in a statement on Wednesday by Director, Communications and Liaison Department Abdullahi Ahmad. The landlords and property agents, according to Ahmad are to remit such collections to FIRS “so that they do not run foul of the Stamp Duty Act.”Stamp Duties payment is enabled by the Stamp Duties Act (SDA) 1939, as amended by numerous Acts and various resolutions contained in the Laws of the Federation of Nigeria. “Property-related transactions like tenancy or lease agreement fall under the Ad Valorem category of the stamp duty which attracts six per cent duty payable in percentage of the total value or sum of the tenancy or lease,” Ahmad said. The party making the payment shall have the obligation to account for the applicable stamp duties.

Source: The Guardian July 23, 2020 07:30 UTC