The Federal Inland Revenue Service (FIRS) has ordered all property owners and their agents in Nigeria, are to charge 6% Stamp Duty on all tenancy and lease agreements.
This was announced by the Director, Communications and Liason Department, FIRS, Mr Abdullahi Ahmad, on Wednesday, July 22,2020.
Property-related transactions like tenancy or lease agreement fall under the Ad Valorem category of the stamp duty which attracts six per cent duty payable in percentage of the total value or sum of the tenancy or lease.
The burden of payment of the six per cent, lies on the beneficiary of the tenancy or lease agreement, whom the Stamp Duty Act identified as the tenant or renter.
Although it was revealed that the tenants are to commence paying the 6% stamp duty, no date has been fixed yet for the charges to begin.