Following several requests by taxpayers seeking clarifications on the current administration of Stamp Duties Act in the country, the Federal Inland Revenue Service (FIRS) has published detailed information to guide taxpayers and the general public on rates payable as stamp duty.
The clarification guide is contained in a Public Notice signed by Executive Chairman, FIRS, Mr Muhammad Nami, and published in major national newspapers on Monday, July 20, 2020, as well as on the official FIRS website, www.firs.gov.ng.
According to Mr. Nami, “stamp duty is a tax payable in respect of dutiable instrument as provided under the Stamp Duties Act, CAP S8, LFN 2004 (as amended). Such instruments include Agreements, Contracts, Receipts, Memorandum of Understanding (MOU), Promissory notes, Insurance policies and others stipulated in the Schedule to the Stamp Duties Act.
“Stamp Duty is chargeable on both physical and electronic instruments in two ways i.e. Ad-valorem, where duty payable is a percentage of the consideration on an instrument; or Flat Rate, where a fixed sum is chargeable irrespective of the consideration on dutiable instrument or document.
According a statement by Abdullahi Ismaila Ahmad, Director, Communications and Liaison Department, the FIRS boss listed no fewer than 50 types of chargeable transactions which require stamp duty. He also specified the rates chargeable on each, according to a statement issued on Monday by Director, Communications and Liaison Department, FIRS, Abdullahi Ismaila Ahmad