The Federal Inland Revenue Service (FIRS) has declared that documents pertaining to rent or lease agreements for homes or offices, including certificate of occupancy as well as business-related transactions are subject to stamp duty payment.
According to the FIRS Director, Communications and Liaison Department, Abdullahi Ahmad, this is necessary in order to give the instruments the force of law and make them legally binding on parties involved in such transactions.
The new FIRS stamp duty was launched in Abuja on June 30, at the official inauguration of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties.
Consequently, the Executive Director of FIRS, Mr. Muhammad Nami, stated that the “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, certificate of occupancy, proxy form, appointment of receiver, memorandum of understanding, joint venture agreements, 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 agreements, 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.
“The FIRS enjoins members of the public to make sure that any of the above listed instruments they give or receive in the course of their business or official transactions have the new FIRS adhesive stamp duty affixed or stamped on them to authenticate or legalize such Instruments,” Mr. Nami stressed.