The Federal Inland Revenue Service (FIRS), as part of measures to generate more revenue, recently introduced the payment of stamp duty on house rent and Certificate of Occupancy.

The FIRS Director for Communication and Liaison Department, Mr. Abdullahi Ahmad, says the new policy gives the legal backing required to bind parties involved in such transactions. Ahmad urges Nigerians to ensure that documents that relate to rent and lease agreements for homes or offices, Certificate of Occupancy, and other common business-related instruments are authenticated with the new FIRS Adhesive Stamp Duty.

Ahmad adds: “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.’’

Meanwhile, an Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties has been inaugurated to enforce sections of the Stamp Duties Act that empower the Federal Government to recover stamp duties, fines and penalties for up to five years.

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