Stamp duty on most rent agreements in Nigeria is at the rate of 0.78 percent and not 6 percent as being widely circulated, according to Taiwo Oyedele, head of tax at PwC.
The Federal Inland Revenue Service (FIRS) on Wednesday said landlords and property agents should charge 6 percent stamp duty on all tenancy and lease agreements they enter into with all leases and remit same promptly to the Service.
However, Oyedele explained in a tweet that based on the Stamp Duties Act, stamp duty on lease or rent agreement is payable as follows: If the lease term is less than seven years, stamp duty rate is 0.78 percent (e.g. N780 on N100,000 rent). For a term of 7+ to 21 years, stamp duty rate is 3 percent (meaning N3,000 for N100,000 rent). For a term above 21 years, stamp duty rate is 6 percent (e.g. N6,000 for N100,000 rent).
“Given that most people enter into rent agreements for less than seven years, the applicable stamp duty rate to most people will be 0.78 percent,” Oyedele said.
If you are an individual renting from another individual, he said, your stamp duty is payable to the state tax authority such as Lagos Internal Revenue Service (LIRS) if you are resident in Lagos. If either the tenant or the landlord is a company, then the duty is payable to FIRS.
The obligation to pay stamp duty on rent rests with the tenant. However, FIRS is seeking to appoint the landlord as the agent to collect and remit the tax, Oyedele said.
The Federal Executive Council (FEC) presided over by President Muhammadu Buhari has approved the establishment of a Nigerian youth investment fund for N75 billion.
It was created to support enterprise among Nigeria’s 68 million youths between ages of 18 and 35.
Minister of Youth and Sports Development, Sunday Dare, disclosed this to State House Correspondents, yesterday.
According to him, youth within the age group with genuine business ideas are to pitch their ideas in any of the 125 micro-credit banks across the country and qualified candidates will have access to the funds.
Dare assured that like the N-power programme, the process is digital and will be fair to all youths aged 18 – 35 regardless of their ethnicity or social status.
“For the first time in the history of Nigeria, the Federal Executive Council today (yesterday) approved the establishment of the Nigerian Youth Investment Fund (NYIF) to the tune of N75 billion. This fund is meant to create a special window for accessing credit facilities and financing on the part of our youths that will help to fund their ideas, innovations and also support their enterprise.
“The best way to call it is that for the first time the country will have a youth bank. A fund that will cater specifically for our youth within the stipulated age band, which is going to be between 18 and 35 years.
“The second approval that secured was for the Ministry of Youth and Sports Development to play a lead role in working on necessary steps that need to be taken in terms of legislation, organisation and other aspects of financing.
“The Federal Ministry of Finance, Budget and National Planning will take the lead when it comes to the aspect of financing, working with the CBN, the Ministry of Youth and Sports Development and other relevant MDAs. A couple of other details will be released later, but I think the most important thing is that the N75 billion Nigerian Youth Investment Fund, to cater specifically for this target group, a population of over 68 million, got the attention and support of the Federal Executive Council today and this fund will be assessed by our youths, once they are able to present their ideas, they can assess this fund directly.”
Minister of Work and Housing, Babatunde Fashola, said council approved a memorandum on the initiative of the president to source bitumen locally for road construction.
“It was a policy memorandum which revealed that a significant amount of bitumen we used in road construction in Nigeria is imported, therefore creating jobs abroad and we recommended to council to approve a directive to the Ministry of Petroleum Resources and the Ministry of Mines and Steel to develop strategies to enhance, stimulate, and encourage local production of bitumen.
“Essentially, that policy recommendation was approved by the council today to encourage bitumen production locally in Nigeria. This will of course help to further diversify the economy and open another sub-sector of the extractive and hydro-carbon industry for local opportunities.
“We see a demand of 500,000 metric tonnes of bitumen locally per annum. So, we encourage those who can manufacture and produce bitumen locally to tap into this demand. We see the opportunity for thousands of jobs to be created directly if this is done. And government intends to give encouragement and support to all those who take up this opportunity.”
“We expect Kaduna Refinery to also raise its game by participating in this sub-sector of hydro-carbon industry.
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In furtherance of his administration’s efforts in cushioning the effect of the Coronavirus Disease (COVID-19) pandemic on residents of Enugu State, Governor Ifeanyi Ugwuanyi has granted tax relief and incentives to taxpayers in the state.
The governor’s decision was contained in a statement by the Chairman of the Enugu State Internal Revenue Service, Prince Emeka Odo.
Odo noted that “The Enugu State Government has since the inception of the current administration, in May 2015, waived the payment of Personal Income Tax as well as Market Tax, for all traders in the major markets of the state”.
The Chairman added that the waivers “which are part of the administration’s pro-poor policies” are still in force and will be sustained till the end of the tenure.
Other COVID-19 tax relief and incentives approved by Gov. Ugwuanyi, according to Odo, are as follows: “The deadline for the submission of Form A for employees and Annual Returns in accordance with Section 41 (3) and 81 (1-3) of the Personal Income Tax Act (PITA) 2011 as amended for companies and institutions operating in Enugu State has been extended to 30th July, 2020.
“A waiver of penalty and interest charged for late remittance of Pay As You Earn (PAYE) deductions is hereby granted from January to December 2020 for all sectors. A 50% discount on all assessed Capital Gains Tax (CGT) from now till December 2020. A 50% discount on all Personal Income Tax Assessment issued to owners of schools and hotels for Year 2020.
“A 50% discount on all assessed Land Use Charge payment for Year 2020. This discount will expire on 31st of December 2020. A waiver of penalty and interest on Land Use Charge for Years 2018 and 2019 once payment is made before December 2020”.
The Chairman stated that “all our esteemed taxpayers are encouraged to obtain their Enugu State Social Benefit Number (ESBN) as it remains the unique identity prerequisite for obtaining electronic Tax Clearance Certificate (e-TCC)”, stressing that “ESBN is free”.
He pointed out that “our liaison offices at Abuja and Lagos are open on a daily basis except weekends and public holidays for easier access to taxpayers” and went further to ask all taxpayers to “make their payments into any Commercial Bank with ENSG IGR Paydirect Platform”, warning: “You must not pay by cash to anyone”.
For the first time in a long while, a Nigerian state is rethinking dividend of democracy and offering empowerment opportunities to those who truly need it, particularly the unemployed youths. – Business Day https://businessday.ng/enterpreneur/article/enugu-state-eyes-soaring-digital-economy-with-e-yes/
Of course, the youths constitute almost half of the Nigerian population and engaging them productively implies more productivity, positive impact on the gross domestic product (GDP), and most importantly, reduction in crime and restiveness as well as ensuring that they are ready for the new digital future
It is against this background that the Enugu State Government set up the Enugu Youth Empowerment Scheme (e-YES), an innovative initiative aimed at empowering youths living in the state with training in digital skills. As well, the forward-looking government invented e-YES in recognition of the place of technology and digitization, which are obviously the new currencies in the world today.
The scheme is an initiative of the Enugu SME Center, under the Enugu Human Capital Development Loan Program, and as it rolls out, thousands of youths are expected to be trained and empowered with digital skills in areas such as: Advertising, Digital Marketing, Internet Promotion, SMS Marketing, Search Engine Optimization (SEO), PPC, and Analytics. Others skills in the scheme include: Mobile Advertising, Email Marketing and Content Marketing.
The scheme, according to the Enugu SME Center, is open to all Enugu State youth and jobseekers that have interest in acquiring digital skills. But the intrigue of the initiative is that the program is guaranteeing the participants training loans, certificates and jobs with private sector to repay the loans.
“Upon completion of the training, participants will be placed into jobs, and within an agreed number of months are obligated to pay back the cost of the training through their respective salaries. This way, they can not only contribute to the economic development of Enugu State and Nigeria at large”, but funds can be recycled to train other youths, the Enugu SME Center said.
Speaking on the initiative, which is part of his critical human development projects, Ifeanyi Ugwuanyi, executive governor, Enugu State, declared, “Our commitment in develop human capital and ensuring that businesses thrive is reflected in our World Bank Ease of Doing Business ranking, which moved from 27th to 3rd”. In line with his principal, Arinze Chilo-Offiah, Special Adviser, SME Development Head, Enugu SME Center, added that, “Human capital development is important in improving and enhancing the quality of life of the people as well as the private sector ecosystem”. Explaining the rationale for the training-for-jobs scheme , Chilo-Offiah said that they are high-income skills that would enable trained youths to thrive in today’s digital-first world, become innovative entrepreneurs and strategic valuable assets to Enugu State and the international community at large.
According to the Special Adviser/SME Development Head, Enugu SME Center, “Technology will continue to drive change in the workplace, and for one to be a game-changer, one must be able to use technology to solve everyday problems. With this initiative, the Enugu SME Centre is giving the youth an edge, starting now”.
However, to ensure the anticipated result, Enugu SME Center has engaged certified and experienced trainers with affiliation to the Digital Marketing Institute of Ireland; a globally recognized digital training body, to equip the youths with the gainful digital skills. One of the trainers is Wild Fusion Digital Centre, a Nigerian-based digital and technology company.
Speaking on their readiness to deliver quality, Abasiama Idaresit, CEO, Wild Fusion Digital Centre, noted that the outfit has an international certification and validation to deliver quality digital marketing training and job placement for the participants of the program.
“We have trained over 4,000 students since 2014, who are gainfully employed and delivering value to their employers”, Idaresit explained.
He stated that “participants will be provided jobs in the private sector and a;lso to provide service for MSMEs, Startups and other such businesses across Nigeria and the globe. Being that we live in a digital age, it is easy for someone to provide service for a company irrespective of geographical location and earn foreign exchange while still residing in Enugu state. This initiative will leverage this as well”.
The e-YES is on and offering youths opportunity to jumpstart careers in the digital world and technology, hence the Enugu State government through the Enugu SME Center is calling on youths from the state, who are desirous of empowerment, to take advantage of the scheme.
The Enugu State SME Centre was established in 2005 in collaboration with the Enugu State Government to provide support for small and medium Enterprises.