Rents to attract stamp duties under new tax bill, FG lists exemptions

• The Nigeria Tax Reform bills are presently successful the last legislative stages and volition soon beryllium passed into law
• The measure introduces large changes to Nigeria's taxation laws for existent estate, including exemptions for immoderate groups of properties
• Tax committee Chairman, Taiwo Oyedele, has listed retired the large changes made and sent a connection to developers

Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.

As portion of the latest reforms contained successful the Tax Reform Bills presently earlier the National Assembly, large changes person been made to taxing of properties.

The archetypal large alteration is that properties with rent supra N10 cardinal volition beryllium required to wage stamp duties, portion properties with rents beneath N10 cardinal volition beryllium exempted from stamp duties.

The Chairman of the Presidential Committee connected Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed that this is contained successful the caller taxation bill.

Oyedele explained that rents supra N10 cardinal volition pull stamp duties, adding that the affluent person the quality to pay. Photo credit: Taiwo Oyedele
Source: Twitter

Speaking astatine the Building and Construction Industry Forum, with the taxable “Nigeria’s Tax Reforms and the Building and Construction Industry: Implications and Opportunities”, Oyedele explained that the caller taxation measure brings clarity into spot taxation to debar debates.

He said;

“So, if you’re paying rent, which is what galore radical volition bash due to the fact that they don’t ain a house, you won’t person to wage stamp duties unless you’re a affluent idiosyncratic who is paying a lot. It’s not similar we are punishing affluent people; it’s conscionable that they person a amended quality to pay.”

FG lists exemptions connected spot tax

Oyedele added that the caller measure besides exempts merchantability of dwelling location from superior gains tax. This means that erstwhile a spot proprietor sells the location successful which helium lives in, nary superior gains taxation volition beryllium paid connected the proceeds.

The forum, which took spot successful Abuja, was organized by the Council of Registered Builders of Nigeria and the Housing Development Advocacy Network, the PUNCH reports.

Speaking to the builders, Oyedele revealed excessively that withholding taxation connected constructions has besides been reduced to a maximum of 2%, to trim load connected developers.

Recall that the authorities had promised to cancel implicit 50 taxes successful the Tax reforms.

Housing developers inquire for taxation alleviation

In a caller report, a radical of lodging developers successful Nigeria asked the national authorities to see tax reliefs for them successful the Tax Bill.

According to them, the request for affordable lodging is high, and incentives volition beryllium required to pull much investors into societal housing.

The developers explained however the taxation credits to the assemblage can construe to little rents, which would payment Nigerians.

Also speaking astatine the builders forum, the Executive Director of the Housing Development Advocacy Network, Festus Adebayo, urged the taxation committee to see incentives and taxation rebates to promote developers to put successful low-cost housing.

The national authorities has often stated its volition to make affordable lodging enactment for Nigerians. Photo credit: Elizabeth Conley/Fayez Nureldine
Source: Getty Images

Adebayo noted that the rents and fees paid by the property developers does not promote them to put successful low-cost housing, and this mostly translates to higher outgo of housing.

Lagos State moves to treble taxation revenue

In related news, Tax betterment Chairman, Taiwo Oyedele, has identified ways that Lagos state tin treble its taxation revenues.

Legit.ng reported that Lagos authorities acceptable a taxation revenue of N2.79 trillion for 2025, but Oyedele insists that this is not reflective of the state's GDP.

He identified galore gross gaps and urged the authorities authorities to instrumentality bold steps to adjacent the gaps.

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Source: Legit.ng