Would you like to know about the Stamp duty ACT? or do you desire to know more about the Stamp duty act? Well, you are on the right page!
Talking about Stamp duty is one of the wonderful topics for the masses. if you are one of the institutions or corporate bodies planning of embarking on paying stamp duty, stay tuned.
on this page, we will be taking you through all you need to know about the Stamp Duty ACT such as is stamp duty is being abolished in ACT, and who pays stamp duty in Nigeria. What are the types of stamp duties?, when and why should I pay stamp duty? and many more.
What is Stamp Duty Act?
A lot of people wonder what really is a Stamp duty and how does in operate. lets get started with getting to know what is stamp duty?
Stamp duty is also referred to as stamp tax or documentary stamp tax . It can be defined as the tax placed on documents by the government that is needed to record transactions legally.
In Nigeria, the stamp duty Act was enacted in the year 1939 on the 1st of April. over the years, it has gone through several amendment and is now collected by the Federal Inland Revenue ,FIRS, which was formerly known as the Federal Board of Inland Revenue, FBIR,
on behalf of the government.
So what is the current stamp duty rate in Nigeria?
Nigeria has a pretty good stamp duty rate of about 0.75% on the authorized share capital of organizations while Financial institution are expected to charge a stamp duty of NGN 50 on every transactions made above NGN 10000.
According to the Stamp Duty ACT , 2004, failure to deduct or pay the stamp duties into the Federal or State Stamp Duties Account attracts some penalties.
Types of Stamp Duties
They are several stamp duties and it include:
- Fixed Duties- as the name implies, these includes duties that are fixed and don’t vary with consideration. These include : duties on payment receipt,guarantor forms, proxy forms, goodwill debenture, legal mortgage, joint venture agreement, insurance policy, Will, etc
- Ad-valorem- These are duties that vary with consideration and they include duties on share capital, Deed of Assignment, Debenture, Bills of Exchange,bill of sale, contract agreement, valuation of property,
Is stamp duty been abolished in ACT?
According to a report by the Nigerian times article, stamp duty for commercial property transactions of $1.5million or less starting from the 1st of July,2018.
This is aim to bring a significant reform that brings about investment and eliminate duty for about 70% on most commercial transactions.
Who pays Stamp duty in Nigeria?
In Nigeria, stamp duty is remitted by a financial institution on their transactions and by some institutions.
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