In this blog, we try to answer the following questions that are common with people: What is stamp duty in Nigeria? What is a stamp duty charge or rates?, How much stamp duty do I pay?
Definition of Stamp
Stamp Duties Amendment Bill in 2015 expands the definition of “stamp” to include electronically generated stamps or stamps embossed through a point of sale (POS) machine or an adhesive postage stamp with face value or specified value.
What is Stamp Duty Charge?
In line with the Federal Government of Nigeria non-oil sector revenue generation drive, A Letter from the Central Bank of Nigeria dated 15th January, 2016 and backed by Stamp Duty Act LFN 2004 and a court ruling on in 2013 authorized all Deposit Money Banks (DMBs) and other financial institutions to collect 50 Naira charge.
Stamp Duty on Bank Deposits
The Bill seeks to include receipts issued in respect of deposits made into a bank as instruments for which stamp duty can be imposed. This will render the decision of the Court of Appeal in Standard Chartered Bank Nigeria Limited v. Kasmal International Services Limited redundant.
Instruments Chargeable by the Federal Inland Revenue Service
A. Flat Rate Charges
| Type of Instrument | Old Rate | New Rate | |
| 1. | Bond forms; Guarantor’s forms; Power of Attorney; Scholarship bond; Loan agreement; Sealed agreement; Partnership agreement; Guarantee of Bank Facilities; Trust Deeds; Memorandum and Article of Association; Admission form in French; Articles of Clerkship; Trustee Fidelity Bond; Sealed Declaration; Protest on Bill of Exchange; Maturity claim forms for Insurance Company; Memorandum of Report; Deed of Appointment; Ordinary receipts ; Protest of Will; Dividend Warrants; Proxy cards. | 50.00 for original copy and 20.00 per counterpart | 500.00 for original copy and 50.00 per counterpart |
| 2. | Ordinary or Open Agreement under hand article; | 20.00 for original copy and 20.00 for extra copy. | 500.00 for original copy and 50.00 for extra copy. |
| 3. | Legacy (Movable Property) | 1.00 on every 100.00 | 500.00 flat |
| 4. | Appointment of commissioner for Affidavit; | 50.00 | 500.00 for original copy and 50.00 for extra copy |
| 5. | Affidavit-Affirmation; Statutory Declaration; Agreement (Memo of hand written)(ordinary) | 15.00 for original copy and 10.00 for extra copy | 100.00 for original copy and 50.00 for extra copy |
| 6. | Agreement ( under seal) | 50.00 for original copy and 20.00 for extra copy | 500.00 for original copy and 50.00 for extra copy |
| 7. | Appointment of Trustee or of Attorney | 50.00 | 500.00 for original copy and 50.00 for extra copy |
| 8. | Warrants of good; Bonds (under seal); Collateral Security; Guarantor form of understanding | 20.00 | 500.00 for original copy and 50.00 for extra copy |
| 9. | Oath and other affiliate bodies relating to above | 15.00 | 500.00 for original copy and 50.00 for extra copy |
| 10. | Certificate of Occupancy; Partnership | 100.00 | 1000.00 for original copy and 50.00 for extra copy |
| 11. | Gift (Land ); Warrants of Attorney of any kind | 50.00 | 500.00 for original copy and 50.00 for extra copy |
| 11a | Will | 50.00 | 500.00 for original copy and 50.00 for extra copy |
| 12. | Notaries Act; | 2.50 | 500.00 for original copy and 50.00 for extra copy |
| 13. | Bank cheques ( per Leaflet) | 00.50 | 1.00 |
B. Ad-Valorem Charges
| Type of Instrument | Old Rate | New Rate | ||
| 1. | Insurance Policy/Policies | 2.50 on every 2000 | 3.00 on every 2000 | |
| 2. | Share capital and share capital increase (TCC required) | 2.50 on every 200.00 | 3.00 on every 200.00 | |
| 3. | Mortgage or Insurance and or Debentures; Indenture and their up-stamping; equitable Mortgage(e.g. Deposit) | 2.50 on every 200.00 | 3.00 on every 200.00 | |
| 4. | Bill of Sale | 2.50 on every 200.00 | 2.00 on every 200.00 | |
| 5. | Assignment from Bank (Amount written on top corner); Discharge (from Insurance Company); Indemnity or lease of Mortgage. | 1.50 on every 200.00 | 2.00 on every 200.00 | |
| 6. | Contract relating to shares (usually no sheet); Loan agreement from Insurance Co. | 0.75 on every 200.00 | 2.00 on every 200.00 | |
| 7. | Surrender; Bill of Exchange | 0.5 on every 200.00 | 1.50 on every 200.00 | |
| 8. | Promissory notes of ordinary documents | 0.25 on every 200.00 | 2.00 on every 200.00 | |
| 9. | Lease agreement on plant and Machinery | 50.00 for original copy and 20.00 | 3.00 on every 200.00 | |
| 10. | Goodwill; Debenture; Settlement | 2.50 on every 200.00 | 4.00 on every 200.00 | |
| 11. | Premium | 1.50 on every 200.00 | 3.00 on every 200.00 | |
| 12. | Contract agreement | 1.00 on every 200.00 | 2.00 on every 200.00 | |
| 13. | Land agreement | 1.00 on every 200.00 | 1.00 on every 50.00 | |
| 14. | Deed of assignment; Confirmation; Ratification | 1.00 on every 50.00 | 1.50 on every 50.00 | |
| 15. | Deed of conveyance or transfer on sale of property | 1.00 on every ?0.00 | 2.00 on every 200.00 | |
| 16. | Lease agreement; sub-lease agreement | 1.00 on every 50.00 | 3.00 on every 100.00 | |
| 17. | Tenancy agreement or form | 25.00 | 3.00 on every 100.00 | |
| 18. | Leasehold agreement or Rent agreement | |||
| (i) | If the term is less than 1 year | 1.00 on every 50.00 | ||
| (ii) | 1-7 year | 4.00 on every 50.00 | ||
| (iii) | 7-21 year | 4.00 on every 50.00 | 3.00 on every 100.00 (multiplied by the number of year) | |
| (iv) | 21 years and above | 5.00 on every 50.00 | ||
| (v) | Indefinite period | 6.00 on every 50.00 | ||
| 19. | Deed of release | 1.50 on every 200.00 | 1.50 on every 200.00 | |
| 20. | Hire purchase; Lending (money) | 1.00 on every 200.00 | 1.00 on every 200.00 | |
| 21. | Legacy (Immovable property) | 50.00 on every 100.00 | 1.50 on every 100.00 | |
| 22. | Policy Insurance Certificate | 2.50 on every 200.00 | 3.00 on every 200.00 | |
| 23. | Promissory Notes/I.O.U. | 1.00 on every 200.00 | 2.00 on every 200.00 |
Non-Chargeable Instruments
| Type of Instrument | Old Rate | New Rate | |
| 1. | Transfer of shares (TCC required) | Free | Free |
| 2. | Shipping agreement | Free | Free |
| 3. | Documents from Ministries and parastatals (letter from the Legal Adviser of the Ministry or Parastatal required) | Free | Free |
* TCC means Tax Clearance Certificate
* CGT means Capital Gains Tax.
E. N. Osemene
Secretary,
Joint Tax Board
Stamp Duty in respect of Incorporation of Companies
Stamping Memorandum and Articles of Association
| 1. | Original copy of Memorandum and Articles of Association | 500.00 | |
| 2. | Additional copies of Memorandum and Articles of Association | 500.00 per copy |
Stamping in respect of Share Capital
| Share Capital | Duty Payable | Share Capital | Duty Payable |
| 10,000 | 150 | 50,000,000 | 750,000 |
| 20,000 | 300 | 60,000,000 | 900,000 |
| 30,000 | 450 | 70,000,000 | 1,050,000 |
| 40,000 | 600 | 80,000,000 | 1,200,000 |
| 50,000 | 750 | 90,000,000 | 1,350,000 |
| 100,000 | 1,500 | 100,000,000 | 1,500,000 |
| 200,000 | 3,000 | 200,000,000 | 3,000,000 |
| 300,000 | 4,500 | 300,000,000 | 4,500,000 |
| 500,000 | 7,500 | 400,000,000 | 6,000,000 |
| 600,000 | 9,000 | 500,000,000 | 7,500,000 |
| 700,000 | 10,500 | 600,000,000 | 9,000,000 |
| 800,000 | 12,000 | 700,000,000 | 10,500,000 |
| 900,000 | 13,500 | 800,000,000 | 12,000,000 |
| 1,000,000 | 15,000 | 900,000,000 | 13,500,000 |
| 2,000,000 | 30,000 | 1,000,000,000 | 15,000,000 |
| 3,000,000 | 45,000 | 2,000,000,000 | 30,000,000 |
| 4,000,000 | 60,000 | 3,000,000,000 | 45,000,000 |
| 5,000,000 | 75,000 | 4,000,000,000 | 60,000,000 |
| 6,000,000 | 90,000 | 5,000,000,000 | 75,000,000 |
| 7,000,000 | 105,000 | 6,000,000,000 | 90,000,000 |
| 8,000,000 | 120,000 | 10,000,000,000 | 150,000,000 |
| 9,000,000 | 135,000 | 20,000,000,000 | 300,000,000 |
| 10,000,000 | 150,000 | 30,000,000,000 | 450,000,000 |
| 20,000,000 | 300,000 | 40,000,000,000 | 600,000,000 |
| 30,000,000 | 450,000 | 50,000,000,000 | 750,000,000 |
| 40,000,000 | 600,000 |