I am sure you would have heard about the word “Stamp Duty” as it has been in the news constitently in recent times.
Today, I will like to talk about Stamp Duty.
What is Stamp duty?
Stamp Duty is governed by the Stamp Duties Act, CAP S8, LFN 2004 (as amended)
The Federal Inland Revenue Service is the competent authority to impose, charge and collect Stamp duties upon instruments specified in the Schedule of the Stamp Duties Act where such duties relate to matters between a company and an individual, group or body of individuals S.4(1).
The relevant tax authorities in a State is authorized to collect Stamp duties on instruments executed by individuals at such rate as may be agreed by the Federal Government S.4(2)
The Stamp Duties Act defined “stamp” as “an impressed pattern or mark by means of an engraved or inked block die as an adhesive stamp or an electronic stamp or an electronic acknowledgement for denoting any duty or fee” (S.2).
“Duty” means “any stamp duty for the time being chargeable under the SDA or any other Act”.
The objectives of stamp duties include:
- Making relevant instruments tenable in court and
- Generating revenue for government
The stamp duty is denoted by way of impressed stamps using:
The 3 modes of denoting Stamp Duties are:
- Direct electronic printing or impression on the instrument;
- Electronic tagging;
- Issuance of stamp duties certificate.
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