The Federal Inland Revenue Service (FIRS) has alerted Nigerians and others resident in the country to make sure that documents pertaining to rent or lease agreements for their homes or offices, Certificate of Occupancy (C of O) as well as a list of other common business-related transactions are subject to authentication with the new FIRS Adhesive Stamp Duty.
The FIRS Executive Director, Mr. Muhammad Nami, explained that this became necessary in order to give the documents the force of law and make them legally bidding on all parties involved in such transactions.
“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 (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.
“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.”
“The FIRS enjoins 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 legalize such Instruments,” Mr. Nami stressed.
It would be recalled that the new FIRS Adhesive Stamp Duty was launched in Abuja on Tuesday June 30, 2020 during the inauguration of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties and is available in all FIRS offices nationwide.