Fresh after revealing that it generated N66bn in six months from Stamp Duty, the Federal Inland Revenue Services, FIRS has revealed that common business-related transaction instruments will be subjected to the new Adhesive Stamp duty.
Some of the business-related transactions to attract stamp duty charges include House rent agreement, C of O, Proxy form; Appointment of Receiver, Memorandum of Understanding (MoU), Joint Venture Agreements (JVA), Guarantor’s form, and Ordinary Agreements Receipts.
FIRS Director, Communications and Liaison Department, Mr. Abdullahi Ahmad, disclosed in a statement in Abuja on Thursday.
“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 Agreement, 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.”
Ahmad further urged Nigerians and other residents to ensure that documents pertaining to rent or lease agreements for their homes or offices, C of O as well as a list of other common business-related transaction instruments were subject to authentication with the new FIRS Adhesive Stamp duty.
He said this was necessary in order to give the instruments the force of law and make them legally binding on all parties involved in such transactions. The official said that the new FIRS Adhesive Stamp Duty came into being at the official inauguration of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties recently in Abuja.
Ahmed quoted the Executive Chairman of FIRS, Mr. Muhammad Nami as saying “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.
According to him, the FIRS, therefore, 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. This, he noted would authenticate or legalize such Instruments.
