FIRS: Stamp Duty Palliatives for Tenants Underway

. Tenants to pay 0.8% charge

The Federal Inland Revenue Service (FIRS) has said the stamp duty charge on rents and leases would apply to only new agreements.

The Service gave the clarification following the controversy that has trailed the new stamp duty policy on rent and lease agreements announced on Wednesday.

Director of communications and liaison department at the FIRS, Ismaila Ahmad, who made the clarification explained that the “FIRS stamp duty on rent or lease only applies to new agreements and not to renewals. If a new agreement is drawn up at renewal, that document should be stamped, just like initial agreement.”

The FIRS weekend put the stamp duty payable on rent or lease agreement for a period below seven years at 0.78 per cent.

The Service directed landlords and property agents to charge stamp duty on all tenancy and lease agreements with tenants and property buyers and remit same to it. It noted that the stamp duty varies from less than 1 per cent to 6 per cent depending on the contract duration.

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

Meanwhile, the Executive Chairman, Mr. Muhammad Nami  during a live appearance on the morning show, “Your View”, on TV Continental (TVC) via video link, hinted that the FIRS is working out new stamp duty palliatives for tenants, which will not be collected in arrears.