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Business News

FIRS clarifies stamp duty charges, lists eligible transactions

Nami listed at least 50 types of transactions that are eligible for stamp duty deductions.

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FG apologizes, says Self-Certification directive is not for everyone, FIRS introduces stamp duty on house rent and C of O transactions

The Federal Inland Revenue Service (FIRS) has made available detailed information to guide taxpayers and the general public on rates payable as stamp duty.

The disclosure was made in a public statement by the Director Communications and liaison Department of the FIRS, Abdullahi Ahmad, on Tuesday July 21, 2020.

Ahmad noted that the clarification was made following several requests by taxpayers who want to know about the current administration of Stamp Duties Act in the country.

READ MORE: FIRS establishes Tax Office for foreigners in Nigeria, intensifies compliance strategy 

According to News Agency of Nigeria (NAN), Ahmad 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 website of FIRS, www.firs.gov.ng.

Nami was quoted 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.”

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READ ALSO: Lagos State Internal Revenue Service may start using BVN to collect taxes

Going further, Nami listed at least 50 types of transactions that are eligible for stamp duty deductions.

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Some of the listed chargeable transactions include bank deposit or transfer, loan agreement, Memorandum of Understanding (MoU) related to land, sales agreement, will, tenancy/lease agreement and all receipts.
The FIRS boss while making the clarification noted that the recently inaugurated FIRS Adhesive Stamp was not the same as postage stamp which is administered by NIPOST for the purposes of delivery of items and documents.

According to Nami, “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

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“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).”

READ ALSO: Investors to access N300 billion as FG set to privatise power companies

A public notice by FIRS, seems to put paid to the controversy/tussle between the service and NIPOST on who should rightly collect stamp duty on behalf of the government.

The public notice reiterates the powers of the FIRS to collect stamp duties on dutiable instruments where such instruments are executed between a company and an individual, group or body of individuals, in line with section 4(1) of the Stamp Duties Act as amended by the Finance Act.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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      Business News

      NCC discloses application requirements for Proof of Concept trial license

      The NCC stated that it had been inundated with requests related to trial frequencies for the purpose of verification of certain concepts.

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      NCC Building, MTN, Glo, Airtel, 9mobile, NCC, Acquisition, Teleology

      The National Communications Commission (NCC) has released application requirements for trial frequencies in certain spectrum brands under the Proof of Concept (POC) Trial license.

      This was disclosed on Wednesday, April 14, 2021, in a statement signed by the Director of Public Affairs, Dr Ikechukwu Adinde; and made public on the Commission’s verified Twitter account, @NgComCommission.

      The NCC stated that it had been inundated with requests related to trial frequencies for the purpose of verification of certain concepts.

      The requirements listed by the NCC include:

      • The PoC trial license application must only be granted to Original Equipment Manufacturers(OEMS)/Vendors, or operators in conjunction with their Original Equipment Manufacturers.
      • PoC trial shall not exceed a period of three months effective from the date of approval.
      • Equipment for Proof of Concept must be ‘Type-approved’ by the Commission.
      • Appropriate Spectrum fees must be paid in accordance with the NCC’s regulations.

      In case you missed it

      Nairametrics reported that Nigerian telco giant MTN recently announced its acquisition of an additional 10MHZ spectrum in the 800MHz band from Intercellular Nigeria Limited.

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      Business News

      Lagos State residents paid highest price for petrol in March 2021 – NBS

      The NBS revealed that the National Average price/litre of petrol was N172.68 in March 2021 compared to N145.40 in March 2020.

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      Subsidy and PIB, petrol price, PPPRA, We have sufficient PMS stock for 38 days- DPR 

      The National Bureau of Statistics (NBS) has revealed that Lagos State residents paid the highest average price for petrol in the country, in the month of March 2021, at N200.87 per litre; while Adamawa state residents paid the lowest average price in the month of March at N162.17 per litre.

      The NBS also revealed that the National Average price/litre of petrol was N172.68 in March 2021 compared to N145.40 in March 2020 and N166.24 in February 2021.

      This was disclosed in a report by the NBS CEO, Dr. Yemi Kale, yesterday, April 14, 2021, via his verified Twitter account @sgyemikale.

      On kerosene the NBS said:

      • National Average Price/litre at N361.29 in March 2020.
      • The states with the highest average were Taraba (N466.67), Ebonyi ( N450) and Benue (N448).
      • The States with the lowest average prices were Bayelsa (N250), Yobe (N296.43) and Katsina (N318.33)

      On Premium Motor Spirit (petrol):

      • National Average price/litre at N172.68 in March 2020
      • The states with the highest average were Lagos (N200.87), Ebonyi (N184.17) and Niger (N183.50)
      • The states with the lowest average prices were Adamawa (N162.17), Taraba (N162.67) and Bauchi (N164).

      What you should know 

      Recall that Nairametrics reported that the federal government has suspended plans to end its subsidy payments as reports indicate that the FG plans to spend N720 billion for the next 6 months on Premium Motor Spirit (PMS) subsidies.

      Continue Reading

        





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