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FG Set To Introduce Stamp Duty On House Rent Agreement, Certificate Of Occupancy and Others


The Federal Inland Revenue Service (FIRS) has noted that from now on, stamp duty will be paid on house rent and Certificate of Occupancy (C of O) in line with its new adhesive duty.

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This information was made known via the FIRS Director, Communications and Liaison Department, Mr Abdullahi Ahmad, a statement in Abuja on Thursday.

Ahmad told Nigerians and other residents to make sure that documents which has to do with rent or lease agreements for their homes or offices, C of O as well as a list of other common business-related transaction instruments are subjected to authentication with the new FIRS Adhesive Stamp duty.

He said this was necessary in order to give the instruments the force of law and make them legally binding on all parties involved in such transactions.

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He furthered 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.

Ahmed quoted the Executive Chairman of FIRS, Mr Muhammad Nami as saying “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 (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.

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“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.”

From what he said, the FIRS have, enjoined 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.

With this, he asserted, that would authenticate or legalise such Instruments.

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