Picture above credit: The Marina Stretch in Lagos island has some of the tallest buildings in Nigeria, one of which is the Union Bank building shown in the photo. Photography: Bobby Azuka-Okocha/9mobile
The Federal Inland Revenue Service (FIRS) has published detailed information to guide taxpayers and the general public on rates payable as stamp duty.
Mr Abdullahi Ahmad, Director Communications and Liaison Department of the FIRS, made this known in a statement in Abuja on Tuesday.
Ahmed said that the clarification was made following several requests by taxpayers seeking such on the current administration of Stamp Duties Act in the country.
He stated that the clarification guide was contained in a Public Notice signed by Executive Chairman of FIRS, Mr Muhammad Nami and was published on the official FIRS website, www.firs.gov.ng.
He quoted Nami as saying “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” he explained.
Nami listed no fewer than 50 types of chargeable transactions which require stamp duty.
He explained that some of the chargeable transactions were bank deposit or transfer, loan agreement, Memorandum of Understanding (MoU) related to land, sales agreement, will, tenancy/lease agreement and all receipts.
Nami clarified that the recently inaugurated FIRS Adhesive Stamp was not the same as postage stamp administered by NIPOST for the purposes of delivery of items and documents.
He said that such was therefore not a substitute for the FIRS adhesive stamp, which was produced for the sole purpose of stamp duty payment.
“The burden of payment of stamp duties whether fixed or ad-valorem is that of the beneficiaries of a contract, or Money Deposit Banks’ customers who transfer an amount of N10,000 and above from his account to another customer’s account.
“It is the responsibility of Ministries, Departments and Agencies (MDAs), Money Deposit Banks (MDBs), Companies, Landlords, Executors, among others to ensure that service providers, contractors and tenants pay stamp duties due on agreements, receipts and other dutiable instruments.
“Failure to deduct or remit stamp duties into the Federal or State Stamp Duties Account attracts relevant penalties and interest as stipulated in the Stamp Duties Act, Cap S8, LFN 2004 (as amended)” Nami stated. (NAN)