Introduction:
Stamp duty is a tax levied on physical and electronic instruments listed in the Schedule to the Stamp Duties Act (as amended). Some of such instruments include Receipts, Agreements, Contracts, etc. Instruments executed in Nigeria are required to be stamped on or before execution, however, a grace of 40 days from the first execution is provided; while unstamped or in- sufficiently stamped instruments first executed outside Nigeria should be stamped within thirty days after it is first received in Nigeria.
The Federal Inland Revenue Service (FIRS) is the competent authority to impose, charge and collect duties on instruments executed between a company and an individual, group, or body of individuals; while the state tax authority covers instruments executed between individuals.
Stamp duty may be imposed at a fixed or ad-valorem rate. The rate is fixed when a specific amount is provided by law, and it is ad-valorem when the law only provides a percentage to be applied to the consideration sum.
An Electronic Money Transfer Levy of N50 is imposed on all electronic receipts or transfer of N10,000 or more.
Persons liable to penalty upon failure to stamp:
| No. | Tile of Instrument as described in the Schedule | Person liable to penalty |
| Bond, covenant, or instrument of any kind whatsoever | The obligee, covenantee or other person taking the security | |
| Conveyance on sale | The vendee or transferee | |
| Conveyances or transfers operating as voluntary dispositions inter vivos. | The grantor or transferor. | |
| Lease | The lessee. | |
| Mortgage bond, debenture, covenant and warrant of attorney to confess and enter up judgment | The mortgagee or obligee in the case of a transfer or re-conveyance the transferee, assignee or disponee or the person redeeming the security | |
| Settlement | The settlor |
Exempted Documents:
| No. | Generally Exempted Documents |
| Transfers of shares in the Government or legislative stocks or funds of Nigeria. | |
| Instruments for the sale, transfer or other disposition, either absolutely, or by way of mortgage, or otherwise, of any ship or vessel or any part, interest, share or property of or in any ship or vessel. | |
| All instruments on which the duty would be payable by Government. | |
| All instruments on which the duty would be payable locally by Government in Nigeria or any of the departments. | |
| Agreements made with the Nigerian Railway Corporation relating to the receipt and carriage of passengers, goods or animals. | |
| Indemnity bonds given to the Nigerian Railway Corporation by consignees (when the railway receipt is not produced) in respect of the delivery of consignments of fresh fish, fruit and vegetables, and other perishable articles. | |
| An instrument of apprenticeship to which the Government is a party. | |
| Bond given by public officer for the execution of his duties. | |
| A instruments on which the duty would be payable by any Consular Officer arising out of his official functions where the foreign government he represents grants the like exemption to Nigerian Consular Officers. | |
| Instruments relating to the alienation, of land or any interest therein which are approved by Local Authorities of the Southern States of Nigeria in accordance with rules made by them under the Local Government Laws. | |
| All instruments relating to the alienation of land or any interest therein which are approved by any local government council under any by-law made under either the Eastern States Local Government Laws or the Western States Local Government Laws, 1953. | |
| All instruments regarding which the Government of the Federation is competent to make laws executed by or on behalf of any co-operative society registered under any Act or Law or by any officer or member of such a society relating to the business of such society. | |
| All documents relating to the transfer of stocks and shares. | |
| Shares, stock, or securities transferred by a lender to its approved agent or a borrower in furtherance of a regulated securities lending transaction. | |
| Shares, stock, or securities returned to a lender to its approved agent by a borrower in pursuance of a regulated securities lending transaction. | |
| All documents relating to securities lending transactions carried out under regulations issued by the Securities Exchange Commission. |
Stamp Duty Rates:
| S/N | Instrument | Nature of Duty | Rate |
| Admission as a barrister or solicitor | Flat | N50 | |
| Affidavit, Affirmation, and Statutory Declaration | Flat | 45k | |
| Agreement under hand | Flat | 15k | |
| Appointment of trustee | Flat | 1.50K | |
| Charter party | Flat | 9k | |
| Contract (Except other contracts specifically charged with stamp duty in the SDA) | Flat | 15k | |
| Contract Note | Ad-valorem | 0.08% | |
| Conveyance or transfer by way of security | Ad-valorem | 0.375% | |
| Conveyance or transfer on sale of any property | Ad-valorem | 1.50% | |
| Debenture for securing payment of money | Ad-valorem | N3 | |
| Declaration of any use of trust | Flat | N3 | |
| Deed of any kind not described in the schedule to the Act | Flat | N3 | |
| Lease | Ad-valorem | 0.78% if lease period is not more than 7 years 3% if lease period is between 7 6% if lease period is over 21 years | |
| Loan capital | Ad-valorem | 0.125% | |
| Marketable securities | Ad-valorem | 2.25% | |
| Mortgage | Ad-valorem | 0.38% | |
| Increase in share capital | Ad-valorem | 0.75% | |
| Insurance | Ad-valorem | 0.08% | |
| Power of attorney | Flat | 3k |
Please do not treat the foregoing as tax advice as it is only an expression of our Tax Information Service. All enquiries should please be directed to our TaxThursday Desk at resources@taxaide.com.ng; +234 700 TAXAIDE.
