All Residents in Nigeria are to Authenticate Their House Rent Agreement with Adhesive Stamp Duty – FIRS

All Residents in Nigeria are to Authenticate Their House Rent Agreement with Adhesive Stamp Duty – FIRS.

Federal Inland Revenue Service (FIRS) Thursday advised residents in Nigeria to always ensure that documents pertaining to rent or lease agreements for their homes or offices, Certificate of Occupancy as well as a list of other common business-related transaction instruments are subject to authentication with the new FIRS Adhesive Stamp Duty.

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The agency explained that such move has become necessary in order to give these instruments the force of law and make them legally bidding on all parties involved in such transactions.

FIRS, in a statement by its Director, Communications and Liaison Department, Abdullahi Ismaila Ahmad, said the new FIRS Adhesive Stamp Duty which is available in all FIRS offices nationwide was launched in Abuja on Tuesday during the official inauguration of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties.

“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; Proxy form; Appointment of Receiver; Memorandum of Understanding (MoU); Joint Venture Agreements (JVA); Guarantor’s form; and Ordinary Agreements Receipts.

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“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,” said FIRS Executive Chairman, Muhammad Nami, in the statement.

The FIRS boss urged members of the public “to make sure that any of the above-listed Instruments they give or receive in the course of their business or official transactions have the new FIRS Adhesive Stamp Duty affixed or stamped on them to authenticate or legalise such instruments.

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