FIRS insists tenants must pay imposed tax on house rent agreements

FIRS insists tenants must pay imposed tax on house rent agreements

- The Federal Inland Revenue Service has insisted that tenants must pay stamp duty

- FIRS has ordered landlords to charge 6% stamp duty on all tenancy and lease agreements

- The service noted that the stamp duty will be paid by tenants or anyone renting a property

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Following the introduction of stamp duty on house rent agreements and Certificate of Occupancy (C of O), landlords and property agents have been asked by the Federal Inland Revenue Service (FIRS) to charge a 6% stamp duty on all tenancy and lease agreements with all renters.

The service in a statement on Wednesday, July 22, explained that the payment of the stamp duty will be done by the beneficiary of the tenancy or lease agreement, Nigerian Tribune reports.

FIRS went on to note that the Stamp Duty Act identifies the beneficiary of the tenancy or lease agreement as the tenant or renter of the property.

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It was also gathered that the collection of the funds is the duty of the landlord or agent in charge of the property for lease or rent and will be remitted to the FIRS.

Stamp Duty: FIRS Insists House Tenants Must Pay

FIRS insists Nigerians pay stamp duty on house rent agreements. Photo credit: Businessday.ng/UGC
Source: UGC

“In any case, the party making the payment shall have the obligation to account for the applicable stamp duties," the statement reads in parts.

Recall that Nigerians are now required to pay stamp duty on house rent agreements and Certificate of Occupancy (C of O) in line with a new directive of FIRS.

Abdullahi Ahmad, a spokesperson for the FIRS made the disclosure in a statement in Abuja on Thursday, July 2.

He advised Nigerians to ensure that documents pertaining to rent or lease agreements for their homes or offices are subjected to authentication with the new FIRS adhesive stamp duty.

Ahmad also said other common business-related transaction instruments should also be subjected to stamp duty.

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Meanwhile, Legit.ng reported that in order to reduce the people's suffering over the coronavirus lockdown, the landlords in Kaduna state have been urged to give two months free rent to their tenants.

The two-month free rents would cushion the effects of the current economic hardship people are being faced with over the COVID-19 pandemic.

The call was made by an interfaith specialist, Hajiya Ramatu Tijjani, and the general overseer of Christ Evangelical and Life Intervention Ministry, Pastor Yohanna Buru in separate interviews.

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Source: Legit

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