The Ogun State Government has stopped the historical practice of direct tax assessment on two (2) company directors for stamp duties on corporate land transactions using the personal income tax rates.
This is in line with the commitment of the Dapo Abiodun‘s administration to create an enabling environment for business and improving its ranking in the ease of doing business index.
In a statement issued by the Ogun state Information Officer in the state Ministry of Finance, Ayobami Disu, he quoted the Commissioner for Finance, Dapo Okubadejo, as saying that the government has replaced the use of average personal income tax rate for Direct Assessment on stamp duty with a flat rate of 0.5% on corporate land transaction value.
According to him, the new rate, which is a Development Levy will only be applicable to applicants that are not liable to Personal Income Tax (PIT) in Ogun State and therefore presents Tax Clearance Certificates (TCC) from other States.
He said: “For applicants resident in Ogun State, the normal PIT assessment will be based on the applicable Pay-As-You-Earn (PAYE) tax rates for such applicants”.
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