The Federal Inland Revenue Service (FIRS) says landlords will serve as collection agents for the six percent stamp duty that will be charged on tenancy and lease agreements.
The tax agency provided a breakdown of how stamp duty collection will be administered in a statement.
According to the breakdown, six percent will be charged as stamp duty on tenancy and lease agreements while certificates of occupancy will attract a flat rate of N1,000.
The FIRS said it is prepared to reposition stamp duties and make it the next major revenue source for Nigeria in the face of dwindling oil revenue.
“The burden of payment of stamp duty whether fixed or ad-valorem is that of the beneficiaries of a contract or money deposits banks customers who transfer an amount of N10,000 and above from his account to another customer’s account,” the statement read.
“Banks, MDAs, landlords and other executors of chargeable transactions are only agents of collection whose duties are to ensure that the stamp duties due on each transaction are remitted to the government’s account as when due.”
In an earlier statement, FIRS had said the new adhesive stamp duty is necessary to give the instruments the force of law and make them legally binding on all parties involved in such transactions.
Here is a breakdown of how stamp duty will be charged on different instruments.
|Appointment of receiver||Flat rate||N500||N50|
|Appointment of trustee or of attorney||Flat rate||N500||N50|
|Appraisement or valuation of property||Ad valorem||1.5 percent||N50|
|Bank cheque per leaflet||Flat rate||N1.00|
|Bank deposit/transfer||Flate rate||N50||N100|
|Bill of sale||Ad valorem||1.5 percent||N50|
|Bonds (mortgage)||Ad valorem||0.375 percent||N50|
|Certificate of occupancy, partnership||Flat rate||N1,000||N50|
|Contract agreement||Ad valorem||1 percent||N50|
|Contract notes||Ad valorem||0.08 percent||N50|
|Debenture||Ad valorem||0.375 percent||N50|
|Deed of assignment||Ad valorem||1.5 percent||N50|
|Deed of gift||Ad valorem||1.5 percent||N50|
|Deed of release/surrender/discharge||Ad valorem||0.075 percent||N50|
|Deed of conveyance or transfer on sale of property||Ad valorem||1.5 percent||N50|
|Discharge or release||Ad valorem||0.075 percent||N50|
|Documents from ministries and parastatals (letter from legal adviser of the ministry of parastatals required)||Non-chargeable||Free||N0.00|
|Gift (Land)||Ad valorem||1.5 percent||N50|
|Goodwill debenture, settlements||Ad valorem||0.375 percent||N50|
|Guarantor’s form (for loan application)||Flat rate||N500||N50|
|Insurance policy/policies||Ad valorem||0.075 percent||N50|
|Joint venture agreements||Flat rate||N500||N50|
|Legal mortgage||Ad valorem||0.375 percent||N50|
|Legal mortgage (upstamping)||Ad valorem||0.375 percent||N50|
|Loan agreement||Ad valorem||0.125 percent||N50|
|Loan agreement (as accompanying document to a mortgage/debenture)||Flat rate||N500||N50|
|Marketable securities||Ad valorem||2.25 percent||N50|
|Memorandum and articles of association (alteration of memo)||Flat rate||N500||N500|
|Memorandum of understanding (related to land, sales, joint venture, surrender, subdivision agreements)||Ad valorem||1.5 percent||N50|
|Memorandum of understanding (related to ordinary agreements)||Flat rate||N500||N50|
|New company registration (government organisations only)||Flat rate||N500||N50|
|Notaries Act||Flat rate||N500||N50|
|Oath and other affiliates bodies relating to above||Flat rate||N500||N50|
|Oath, affidavit affirmation, statutory declaration, agreement (memo of handwritten) ordinary||Flat rate||N500||N50|
|Ordinary or open agreement underhand articles||Flat rate||N500||N50|
|Power of attorney – Revocable/not land-related||Flat rate||N500||N50|
|Power of attorney (Irrevocable/land-related)||Ad valorem||1.5 percent||N50|
|Power of attorney (POA not relating to sales, conveyance, transfers of any landed property)||Flat rate||N500||N50|
|Promissory notes of ordinary documents/I.O.U||Ad valorem||0.1 percent||N50|
|Proxy form||Flat rate||N500||N50|
|Sales Agreement||Ad valorem||1.5 percent||N50|
|Settlement of any instrument||Ad valorem||0.375 percent||N50|
|Share increase||Ad valorem||0.75 percent||N50|
|Share increase (pre-incorporation)||Ad valorem||0.75 percent||N50|
|Share reduction||Flat rate||N500||N50|
|Share reduction (pre-incorporation)||Ad valorem||0.75 percent||N50|
|Share transfer (pre-incorporation)||Ad valorem||0.75 percent||N50|
|Surrender, bills of exchange||Ad valorem||0.1 percent||N50|
|Tenancy/lease||Ad valorem||6 percent||N50|
|Vending agreement||Ad valorem||1 percent||N0.00|