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Stamp Duty: Landlords, Property Agents Must Collect, Remit 6% on Tenancy, Lease Agreement – FIRS

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The Federal Inland Revenue Service (FIRS) has directed landlords and property agents to ensure that they charge 6% Stamp Duty on all tenancy and lease agreements  enter into with renters and remit same promptly in order not to run foul of the Stamp Duty Act.

The directive is as a result of the recent release and wide circulation of a stamp duty clarification guide by the FIRS Executive Chairman, Mr. Muhammad Nami.

In a statement signed by the Director, Communications and Liaison Department, Abdullahi Ismaila Ahmad said according to
Mr, Nami, property-related transactions like tenancy or lease agreement fall under the Ad Valorem category of the stamp duty which attracts 6% duty payable in percentage of the total value or sum of the tenancy or lease.

He said the burden of payment of the 6% lies on the beneficiary of the tenancy or lease agreement, whom the Stamp Duty Act identified as the tenant or renter and the responsibility of collection and remittance fall on the landlord or agent in charge of the property for lease or rent.

Mr. Nami stressed that “in any case, the party making the payment shall have the obligation to account for the applicable stamp duties.”

Some other Stamp Duty types and their rates are Appraisement or Valuation of Property, 1.5%; Certificate of Occupancy, Partnership N1,000 flat rate; Gift of Land, 1.5%; Legal Mortgage, 0.375%; Legal Mortgage (Upstamping), 0.375%; Deed of Conveyance or Transfer on Sale of Property, 1.5%; Gift of Land, 1.5%; Memorandum of Understanding (Related to Land, Sales, Joint Venture, Surrender, Subdivision Agreements, 1.5%; Power of Attorney (Irrevocable/Land Related), 1.5%; and Sales Agreement, 1.5%.

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