FIRS PRESS RELEASE ON STAMP DUTIES & ADMINISTRATION IN NIGERIA
The Federal Inland Revenue Services (FIRS) has issued clarifications via a press release on the administration of stamp duties in Nigeria. The FIRS gave clarifications on chargeable transactions and rates, administration, payment, and remittance of stamp duties. Also, clarifications have been provided on the difference between FIRS’ adhesive stamp and postage stamp, as well as penalties for failure to deduct or remit stamp duties.
Key highlights of the press release
- FIRS is the only competent authority to impose, charge, and collect duties upon instruments executed between a company and any person including duties in respect of banking transactions.
- Relevant State tax authorities are only authorized to collect duties in respect of transactions between individuals.
- Stamp duty commissioner has been appointed to administer the provisions of the Stamp Duties Act, Cap S8, LFN 2004 (as amended).
- A N50 adhesive stamp duty is applicable on all receipts. Also, a N50 stamp duty is due from customers on all electronic receipts for, or electronic transfer of money made through any Money Deposit Banks (MDBs) in Nigeria, in any type of account, where the transfer is N10,000 and upwards.
- Stamp duties collected by Money Deposit Banks or duties chargeable on electronic transfer of money initiated and received by individuals through Money deposit Banks, are to be remitted to the FIRS stamp duties account.
- Money Deposit Banks, Landlords, Ministries, Departments, and Agencies, are agents of Government responsible for the collection and remittance of stamp duties to Federal and State Government as and when due.
- Penalties for failure to deduct or remit stamp duties are as stipulated in the Stamp Duties Act, Cap S8, LFN 2004 (as amended).
- FIRS adhesive stamp for denoting stamp duty is not a substitute for postage stamp administered by NIPOST. Whereas postage stamp is administered by the NIPOST for the purposes of delivery of items or documents, the FIRS adhesive stamp duty is for the sole purpose of duty payment as provided in Section 5(2) of the Stamp Duties Act.
The list of specific documents/ instruments on which stamp duty is applicable was also stated in the press release. Click this link to view the press release.
It is clear from all indications that stamp duties are fast becoming a major source of revenue to the Federal Government of Nigeria, therefore, taxpayers are advised to adhere strictly with the provisions of the Stamp Duties Act.
Should you require further clarification with regards to compliance with the provisions of the Stamp Duties Act, please contact us at Mazars Nigeria.