Says it authenticates house rent agreement, C of O, others
BY COBHAM NSA, ABUJA – The Federal Inland Revenue Service (FIRS) has warned that without the new FIRS Adhesive Stamp Duty, all documents relating to rent or lease agreements for homes or offices, and Certificate of Occupancy (C of O) will no longer be authentic in the country.
Similarly, the Service said a list of other common business-related transaction instruments are also subject to certification by the newly introduced Stamp duty.
In alerting Nigerians and foreigners resident in the country on this development, FIRS said measure is adopted to give these instruments the force of law and ensure they are legally bidding on all parties concerned in such transactions.
According to the Executive Chairman of FIRS, Mr Muhammad Nami, it is essential for the public to ensure that all “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 legalize such Instruments.”
M Nami, who explained that the new FIRS Adhesive Stamp Duty is available in all FIRS offices nationwide, 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.”
A statement issued by FIRS’ Director, Communications and Liaison Department, Abdullahi Ismaila Ahmad, further quoted Mr Nami as saying; “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.”
The FIRS boss further said the; “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.”
Official launch of the new FIRS Adhesive Stamp Duty took place in Abuja on Tuesday June 30, 2020 when the Secretary to the Government of the Federation (SGF), Mr Boss Mustapha, formally inaugurated the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties.