Landlords and property agents across Lagos are to collect a six percent rent increase from tenants to pay for stamp duties and lease agreements, the Federal Inland Revenue Service (FIRS) has said.
Disclosing this to the press, Wednesday, the FIRS Spokesperson, Mr Abdullahi Ahmad said the extra charge was necessary to prevent the home owners from violating the Stamp Duty Act.
He said the admonition came following the recent release and wide circulation of a stamp duty clarification guide by FIRS Executive Chairman, Mr. Muhammad Nami.
He explained that property-related transactions like tenancy or lease agreement fell under the Ad Valorem category of the stamp duty which attracted six per cent duty payable in the percentage of the total value or sum of the tenancy or lease.
According to the FIRS, the burden of payment of the six per cent is meant to be bore by the beneficiary of the tenancy or lease agreement, whom the Stamp Duty Act identified as the tenant or renter, while landlord or agent in charge of the property for lease or rent is responsible for collection.
He said, “In any case, the party making the payment shall have the obligation to account for the applicable stamp duties.
“Some other Stamp Duty types and their rates are Appraisement or Valuation of Property, 1.5 per cent; Certificate of Occupancy, Partnership N1,000 flat rate; Gift of Land, 1.5 per cent Legal Mortgage, 0.375 per cent, Legal Mortgage (Upstamping) and 0.375 per cent.
“Others are deed of Conveyance or Transfer on Sale of Property, 1.5 per cent: Gift of Land, 1.5 per cent Memorandum of Understanding (Related to Land, Sales, Joint Venture, Surrender, Subdivision Agreements, 1.5 per cent, Power of Attorney (Irrevocable/Land Related), 1.5 per cent and Sales Agreement, 1.5 per cent.”Follow us on social media