Stamp Duties Tax in Nigeria

The Stamp Duties Act requires that all written instruments, including instances where any property or interest in property is or are transferred or leased to any person, must be stamped.

Generally, Stamp Duties is charged at the rate of 75 kobo for every N200 of the consideration of certain real estate transactions like mortgages, while for conveyances or the transfer or sale of real property, the stamp duties rate is 75kobo for every N50. The Stamp Duties rate for lease and rental agreements is 16kobo for every N200 of the consideration of the lease or rental agreement.

Any written document that is not stamped is not allowed to be received in any judicial proceeding in Nigeria until the stamp duty and the resulting penalty for the non-payment of the stamp duty is paid.

The complex nature of collecting stamp duties as it relates to contract notes was once confused in the stock market with stockbrokers claiming that they are being threatened by the Federal Inland Revenue Service (FIRS) and Nigerian Postal Service (NIPOST). However, the controversial issues had since been resolved. For the purpose of clarification, the provisions in the Stamp Duty Act which prescribe that stamp duties on certain categories of documents such as agreements, contract notes among others, could be denoted by adhesive stamps is a demonstration of government concern for cost efficiency achievable through lower compliance cost and minimal cost of administration. This arrangement of convenience does not in itself imply the ceding of FIRS stamp duties collection responsibility to any agency. The responsibility for stamp duty collection is solely vested on FIRS. With specific reference to the collection of duties on contract notes, FIRS is to collect all stamp duties payable through the Commissioner of Stamp Duties, while NIPOST engages in the supplies of adhesive stamps where the duty payer excises the option to do so.

There are fines and other penalties for any failure to pay stamp duties on any written instrument that is not exempted from the payment of stamp duty.

Again in Lagos State, the flat Stamp Duty rate of 2% of the consideration of the property transaction is charged when applying for Governor’s consent to the transfer of any interest in a landed property.

 

spacer

13 comments on “Stamp Duties Tax in Nigeria

  1. sanni

    In addition to your submission on the stamp duties. Looking at the administration of stamp duty, according to the stamp duty Act, the collection of stamp duty on corporate document is vested on the FIRS whole that of individual documents vested on the state board of internal revenue. I think this area should be clarified.

    1. Hakeem Adesanya

      Dear Sanni, thank you for your contributions. Just like PAYE, stamp duties is strictly the responsibility (that is administration and collection) of the Federal Government, thus FIRS is responsible for the collection. However, state (Just like NIPOST) are allowed to collect stamp duty between document instruments between individuals in order to boost their internal generated revenue. Check section 4(2) of the Stamp Duty Act, it reads: “The State Governments shall collect duties in respect of instruments executed between persons or individuals at such rates to be imposed or charged as may be agreed with the Federal Government.” Thus it means, Federal Government can come tomorrow and stop the collection. This arrangement of allowing states to boost their internal revenue does not in itself imply the ceding of FIRS stamp duties collection responsibility to any agency. The responsibility for stamp duty collection is solely vested on FIRS. – See more at: http://adesanyapartners.com/blog/?p=213#comment-65

  2. Hakeem Adesanya

    Dear Sanni, thank you for your contributions. Just like PAYE, stamp duties is strictly the responsibility (that is administration and collection) of the Federal Government, thus FIRS is responsible for the collection. However, state (Just like NIPOST) are allowed to collect stamp duty between document instruments between individuals in order to boost their internal generated revenue. Check section 4(2) of the Stamp Duty Act, it reads: “The State Governments shall collect duties in respect of instruments executed between persons or individuals at such rates to be imposed or charged as may be agreed with the Federal Government.” Thus it means, Federal Government can come tomorrow and stop the collection. This arrangement of allowing states to boost their internal revenue does not in itself imply the ceding of FIRS stamp duties collection responsibility to any agency. The responsibility for stamp duty collection is solely vested on FIRS.

  3. Johnd777

    Great, thanks for sharing this blog.Really thank you! bkgddebbcccd

  4. Johnk391

    When some one searches for his necessary thing, so heshe desires to be available that in detail, thus that thing is maintained over here. dagekkeakbge

  5. Johne692

    Hello. excellent job. I did not expect this. This is a great story. Thanks! bbeeaaadcdgd

  6. Johnc433

    This kind of game gives a real experience of building a farm and planting adeddgbdkegd

  7. Austine

    Dear Hakeem, thanks a lot for this clarification. I must confess that many Nigerians are confused about this issue as much as I was until I read your blog. Continue with the good work

  8. isaac solomon

    Is’t really neccesary to inbid in tax paying wen it cum to transfer of fund,cheque or prome won in terms of money,is neccesary u pay sum certain amount b4 u embark on the transaction or collect the the fund from the source.

  9. linda o

    Where is the office of the commissioner
    for stamp duties in Lagos

  10. Francis

    Are state government liable to pay stamp duty to federal government on taxable transactions.

  11. Emeka

    Stamp duty on a power of attorney. What consideration is made for payment?
    Thanks for the blog.

Leave a reply