INTRODUCTION TO STAMP DUTY OF LEASE AGREEMENT
There has been a lot of controversy and misconceptions from a lot of quarters in the last few days on the fee payable for registering lease agreements or stamp duty of lease agreement. This has largely been due to the lack of accurate information on registration of lease agreement. As the common biblical saying goes “my people perish for lack of knowledge”. Stamp duty of lease agreement is common when the company intends to register its commercial lease agreement.
FORMS OF STAMP DUTY ASSESSMENTS
Basically, there are two forms of stamp duty assessments, namely –
- Fixed stamp duties – this stamp duty does not vary, irrespective of the value of the document or instrument. Applicable to lease agreement.
- Variable or Ad-Valorem stamp duties – the duty here increases or decreases in proportion to the value of the consideration in the document or instrument to be stamped. Applicable to the tenancy agreement.
REGISTERING LEASE AGREEMENTS IN CAMEROON
The question now is what is the correct stamp duty to be paid on lease agreements? The general tax code provides the mechanism/formula for calculating the applicable percentages. Our services are available to guide you to ascertain your specific rate after due assessment and review of the company profile.
DOCUMENT REQUIRED TO STAMP DUTY A LEASE AGREEMENT
Here are some of the pivotal documents required for stamp duty of lease agreement in Cameroon.
- 3 Copies of the lease agreement duly signed
- Copy of taxpayer’s card
- Copy of company articles of association
- Copy of company incorporation certificates
CONCLUSION ON REGISTRATION OF LEASE AGREEMENT IN CAMEROON.
In tax, you are either liable or not liable. You can only be liable to pay stamp duty of lease agreements at the rate prescribed by applicable law, which in this case is the General Tax code It is instructive to also point out that the courts in Cameroon have held on several occasions that a subject is not to be taxed unless the language of the statute clearly imposes the obligation.
Article by MAFANY victor NGANDO
Kinsmen Advocates Law Firm
“The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstance”.