FIRS lists 50 transactions in which stamp duty payment becomes Inexcusable2 min read
The Federal Inland Revenue Service, FIRS, has listed not less than fifty 50 types of chargeable transactions that legally attract stamp duty charges and of which could pitch defaulters on the wrong side of the laws of the land.
Executive Chairman, FIRS, Mr. Muhammad Nami, who made the list available explained that some of the chargeable transactions were, bank deposit or transfer, loan agreement, Memorandum of Understanding (MoU) related to land, sales agreement, will, tenancy/lease agreement and all receipts.
Nami clarified that the recently inaugurated FIRS Adhesive Stamp was not the same as postage stamp administered by NIPOST for the purposes of delivery of items and documents and was therefore, not a substitute for the FIRS adhesive stamp, which was produced for the sole purpose of stamp duty payment.
He explained that, “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”.
According to a media statement by the Director of Communications and Liaison, FIRS, Alhaji Abdullahi Ahmad, “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”.
It further stated that, “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)” Nami stated.
The statement made it known that FIRS had published on its website, www.firs.gov.ng, detailed information to guide taxpayers and the general public on rates payable as stamp duty.
The statement from Director of Communications noted that,
“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”.
The statement quoted the Chairman further elucidation thus, “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”.Share