FIRS Makes Clarification on Stamp Duties Rate for Rent/Lease

The FIRS has said that there is no increase on Rent/Lease. The agency made the clarification via its Twitter handle

Here is what the FIRS Twitter handle posted:

“Please note that Stamp Duties rate on Rent/Lease is graduated depending on the number of years in the Agreement: 1-7 years is 0.78%; above 7 years to 21 is 3%; above 21 years is 6%.

Schedule to Stamp Duties Act, the part on Lease, states: For every N50 and also every fractional part of N50 of the rent of the year: if the term is definite and doesn’t exceed 7yrs–39Kobo or 0.78%; exceeds 7yrs and doesn’t exceed 21yrs–N1.50Kobo or 3%; above 21yrs– N3.00 (or 6%)

We make this clarification following enquiries by taxpayers and to clarify that Stamp Duties rate on Rent/Lease is graduated according to the years in Agreement. We appreciate the public for their support and enjoin all taxpayers to continue to comply with their tax obligations

If the duration of a Rent/Lease Agreement is btw 1yr and 7yrs, Stamp Duties rate is 0.78% of the sum. If the duration of the Agreement is above 7yrs but not above 21 yrs, the rate is 3% of the sum. If the duration of the Agreement is above 21 yrs, the rate is 6% of the total sum

The FIRS will continue to work in collaboration with our stakeholders to make taxation the pivot of national development. When in doubt, please, you can contact FIRS for your reliable information”