The Federal Inland Revenue Service (FIRS) has issued a clarification on the applicable rates for stamp duty on rent/lease agreements.
The Service clarifies that the stamp duty rate on rent agreement is graduated depending on the number of years in the agreement, and not at a flat rate of 6% as widely circulated in the media.
The applicable rates are as follows:
a. 1-7 years’ agreement: 0.78%
b. Above 7 years to 21: 3%
c. Above 21 years: 6%
The Service has invited the public to note that FIRS does not increase tax rates.