The Stamp Duties Act requires that all written instruments, including\u00a0instances where any property or interest in property is or are transferred\u00a0or leased to any person, must be stamped.<\/p>\n
Generally, Stamp Duties is charged at the rate of 75 kobo for every N200\u00a0of the consideration of certain real estate transactions like mortgages,\u00a0while for conveyances or the transfer or sale of real property, the stamp\u00a0duties rate is 75kobo for every N50. The Stamp Duties rate for lease and\u00a0rental agreements is 16kobo for every N200 of the consideration of the\u00a0lease or rental agreement.<\/p>\n
Any written document that is not stamped is not allowed to be received in\u00a0any judicial proceeding in Nigeria until the stamp duty and the resulting\u00a0penalty for the non-payment of the stamp duty is paid.<\/p>\n
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.\u00a0For the purpose of\u00a0clarification, 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\u00a0is a demonstration of government concern for cost efficiency achievable through lower compliance cost and minimal cost of administration.\u00a0This 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.\u00a0With 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.<\/p>\n
There are fines and other penalties for any failure to pay stamp duties on\u00a0any written instrument that is not exempted from the payment of stamp\u00a0duty.<\/p>\n
Again in Lagos State, the flat Stamp Duty rate of 2% of the consideration\u00a0of the property transaction is charged when applying for Governor\u2019s\u00a0consent to the transfer of any interest in a landed property.<\/p>\n
<\/p>\n\n
The Stamp Duties Act requires that all written instruments, including\u00a0instances where any property or interest in property is or are transferred\u00a0or leased to any person, must be stamped. Generally, Stamp Duties is charged at the rate of 75 kobo for … Continue reading