The FIRS boss also explains in details, the new charges on tenancy and lease agreements.
Amid calls by some Nigerians for tax palliatives to be granted to them to cushion the impact of the coronavirus, the Federal Inland Revenue Service said on Tuesday some Nigerians are already enjoying such palliatives.
“The Finance Act 2019 has exempted 60 per cent of taxpayers, including Small and Micro Enterprises from paying tax as only companies which make up to N25 million turnover now pay tax or collect Value Added Tax . He also clarified that tenants, “not landlords, should pay the applicable stamp duty by themselves at any commercial bank of their choice, and not to any landlord”.
“The stamp duty is charged at graduated rates. Stamp duty on rent or lease from one year to less than seven years is 0.78%. If your rent is N100,000, stamp duty due on it is N780. “If you can afford to pay rent at once from 21 years and above the stamp duty due is 6 per cent, which is very rare, but we created room for it because some renters prefer long leases,” the FIRS chief said.
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