As the Federal government seeks to diversify and improve its revenue base, the Federal Inland Revenue Service (FIRS) has said documents on rent or lease agreements for homes or offices, Certificate of Occupancy (C of O) as well as a list of other common business-related transaction instruments are now to be sealed with the new FIRS Adhesive Stamp duty.
This means that the FIRS stamps are to be procured from the Agency’s offices located nationwide and affixed to the aforementioned documents to make them valid and legal.
This new rule follows the launch of the new FIRS Adhesive Stamp Duty last Tuesday during the official inauguration of the Inter-Ministerial Committee on Audit and Recovery of Back Years Stamp Duties.
In a statement issued Thursday, by Director, Communications and Liaison Department, FIRS, Abdullahi Ismaila Ahmad said the new rule is to apply legality to the aforementioned documents.
“This is necessary in order to give these instruments the force of law and make them legally binding on all parties involved in such transactions”
The Executive Director, FIRS,. Muhammad Nami, says the 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 FIRS boss continued: “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.
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.
The new FIRS Adhesive Stamp Duty is available in all FIRS offices nationwide.