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FIRS clarifies 6% stamp duty on rent.

Mr Muhammad Nami, chairman of FIRS: agency clarifies stamp duty rates on rent

The Federal Inland Revenue Service(FIRS) has issued a clarification on stamp duty rates for rents and leases, following public outrage.

In multiple tweets Saturday night, the revenue collection agency said it is not imposing an across the board 6 percent stamp duty charge.

Rather it said the rate is graduated, depending on the number of years in rent or lease agreements.

“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 7years–39Kobo or 0.78%; exceeds 7years and doesn’t exceed 21yrs–N1.50Kobo or 3%; above 21yrs– N3.00 (or 6%)

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“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

“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 @firsNigeria for your reliable information”.

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