Tenancy/Lease Agreement: Tenants to Pay 6% Stamp Duty

The Federal Inland Revenue Service (FIRS) has directed landlords and property agents to charge six per cent Stamp Duty on all tenancy and lease agreements.

The landlords/ property agents are to remit such collections to FIRS so that they do not run foul of the Stamp Duty Act.

The directive was issued through a statement by the Director, Communications and Liaison Department of the agency, Abdullahi Ahmad.“Property-related transactions like tenancy or lease agreement fall under the Ad Valorem category of the stamp duty which attracts six per cent duty payable in the percentage of the total value or sum of the tenancy or lease,” he said.

He added that the burden of payment of the six per cent lies on the beneficiary of the tenancy or lease agreement, whom the Stamp Duty Act identified as the tenant or renter.