The Federal Inland Revenue Service (FIRS) had issued a public notice in response to the Taxpayer’s request for clarification on the current administration of Stamp duties in Nigeria.
In the public notice, FIRS made clarifications on the under-listed:
- Dutiable instrument such as agreements, Contracts, receipts etc
- Dutiable physical and electronic instruments
- The basis and rate of Stamp duty on dutiable instruments i.e Ad-valorem and flat rate
- FIRS is charge with the competent authority to impose, charge and collect duties upon instruments in which such instruments relates to matters executed between a Company and any person.
- Relevant tax authority of a State to collect duties in respect of instrument executed between individuals.
- FIRS is vested with the power to collect Stamp duties on all banking transactions.
- Stamp duties chargeable on all electronic transfer of money including those initiated by an individual and received by another individual through MDB in Nigeria shall be remitted to FIRS Stamp duties account only.
- The burden of payment of Stamp duties whether fixed or ad-valorem is on the beneficiary.
- MDBS, MDAs, Landlord and other executors of chargeable transaction are only agent of collection of the RTA and they have the responsibility of ensuring that the Service providers, Contractors tenant deduct the Stamp duties due on agreements, receipts and other dutiable instruments.
- FIRS adhesive Stamp is different from postage Stamp which is administered by NIPOST for the purpose of delivery of items and documents.
- Penalty and interest will be imposed by RTA for failure to deduct or remit Stamp duties in accordance with Stamp Duties Act, Cap s8, LFN 2004 (as amended)
With this Public notice, we hope that the public will be guided on the controversy on the collection of stamp duties between FIRS and other State on one hand and FIRS and NIPOST will be put to rest. However, we expect NIPOST and some States Tax Authorities react to the publication and since it runs contrary to their initial position
The public Notice is silent on back duty examination on Stamp duty and related transactions
The FIRS is prepared to make stamp duties next major Revenue source for Nigeria.
See details of the clarification on the link below.
VIEW FIRS PRESS RELEASE ON STAMP DUTI10265720200720160009
For further enquires kindly visit www.ijewere.net or contact 08129929306 08129929442