By Adedapo Adesanya
The Federal Inland Revenue Service (FIRS) has announced that stamp duty will be paid on house rent and Certificate of Occupancy (C of O) as part of measures to reduce disputes in real estate related transactions and generate more revenue.
This was disclosed in a press statement issued by the FIRS Director for Communication and Liaison Department, Mr Abdullahi Ahmad, in Abuja on Thursday.
He explained that the new policy was necessary so as to give the instruments the legal backing required and make them legally binding on all parties involved in such transactions.
Mr Ahmad asked Nigerians to ensure that documents that relate to rent and lease agreements for homes or offices, C of O, and other common business-related transaction instruments were authenticated with the new FIRS Adhesive Stamp Duty.
The FIRS spokesperson said that 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 recently in Abuja.
Mr Ahmad quoted the Executive Chairman of FIRS, Mr Muhammad Nami, as saying that “chargeable transactions under the Stamp Duties Act as amended in the Finance Act 2019 are in two categories – Fixed Duty Instruments and Ad-Valorem Instrument.
“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,’’ he explained.
