FIRS Headquarters
By Our Reporter
The Federal Inland Revenue Service (FIRS) said lease or rent agreements for homes, offices, business ventures and Certificate of Occupancy (C of O) would be subject to authentication with the new adhesive stamp duty as from now on.
This was contained in a statement by the Director, Communications and Liaison Department, Abdullahi Ismaila Ahmad, advised Nigerians and others resident in the country to note accordingly.
FIRS said the move was necessary to give these instruments the force of law and make them legally bidding on all parties involved in such transactions.
The new FIRS adhesive stamp duty was launched in Abuja on Tuesday June 30, 2020 in Abuja at the official inauguration of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties.
In the statement, Executive Chairman, FIRS, Mr. Muhammad Nami, said “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 Agreements; 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.” Nami concluded.
