Stamp Duty On Tenancy Agreement In Nigeria

He said the exhortation came after the recent publication and dissemination of a stamp duty clarification guide by FIRS Executive Chairman Mr. Muhammad Nami. The statement states in part: “We have read with dismay the federal government`s new policy by the Federal Inland Revenue Service, FIRS, which provides for a 6 per cent stamp duty for every lease and rental in Nigeria. This new financial burden for poor Nigerians comes at a time when socio-economic pressure resulting from COVID-19 fractures is pushing many Nigerians across borders. The payment of taxes is part of civil liability and there are different taxes imposed on individuals, goods and organizations. Stamp duty is one of these taxes and should be paid for rental/lease contracts, but the agencies in charge of the collection may not have collected over the years or many Nigerians have failed to pay What simply says section 4 (1) is that if the instrument or document is between one company and another company, or a company and an individual, such stamp duty would be paid directly to FIRS. The Nigeria Labour Congress, NLC, rejected the 6% stamp duty imposed by the federal government on rents and leases. “Stamp duty should not encourage a landlord to increase their rent because it is not paid by the landlord. The owners are not our debt collectors. It is the tenant`s responsibility to pay the stamp duty and you don`t have to give it to your landlord. As a tenant, calculate 0.78 percent of your rent and pay that fraction at the FIRS office near you or at your bank.

You should then set the impraturation of stamp duty on the lease before signing it with your landlord. It`s as simple as that. At the beginning of July 2020, when FIRS issued the stamp duty circular, it was as if the 6% fee was intended to be applied in all areas, regardless of the duration of the rental. If this statement is taken literally, it simply means that, on each rental contract prepared, 6% of the rental value it contains must be deducted as stamp duty, without any clarification being provided. The accusation of the president of the FIRS begins. From July 2020, any new lease between a lessor and a tenant will be subject to stamp duty. M. Nami said during the revelation in a morning show “Your view” on TVC that, given the current economic realities triggered by COVID-19, the service is working on the palliative stamp duty package…

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