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FIRS introduces stamp duty for rent agreements, (C of O)

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The Federal Inland Revenue Service (FIRS), has announced the introduction of stamp duty on house rent and certificate of occupancy (C of O).

The Director of FIRS communications and liaison department, Abdullahi Ahmad, who made briefing on the new development, also urged all residents to ensure that all rent or lease documents and C of O are subject to authentication with the new FIRS adhesive stamp duty.

Ahmad said it is of high importance to give the instruments the force of law and make them legally binding on all parties involved in such transactions.

He said, 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 that recently held in Abuja.

According to him,  Muhammad Nami the FIRS executive chairman: categorically stated 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 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.

“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 however called on  all members of the public to ensure that all the listed instruments have the new FIRS adhesive stamp affixed of stamped on them as this would legalise such instruments and transactions.

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