The Daily Crucible
Governor Dapo Abiodun has stopped the historical practice of direct tax assessment on two company directors for stamp duties on corporate land transactions using the personal income tax rates.
Abiodun said the decision formed part of his administration's resolve to create an enabling environment for business to thrive and improve its ranking on the ease of doing business index.
The governor made this known in a statement by the state Ministry of Finance, quoting the Commissioner for Finance, Dapo Okubadejo, as saying that Abiodun's administration 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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