{"id":295619,"date":"2023-07-11T12:38:54","date_gmt":"2023-07-11T11:38:54","guid":{"rendered":"https:\/\/nigerianfinder.com\/?p=295619"},"modified":"2023-07-11T12:40:17","modified_gmt":"2023-07-11T11:40:17","slug":"how-to-calculate-stamp-duty-charges-in-nigeria","status":"publish","type":"post","link":"https:\/\/nigerianfinder.com\/how-to-calculate-stamp-duty-charges-in-nigeria\/","title":{"rendered":"How to Calculate Stamp Duty Charges in Nigeria\u00a0"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Taxes are paid on written and electronic documents, such as agreements, contracts, receipts, etc., relating to an act performed or required to be performed in Nigeria. This type of tax known as Stamp Duty is charged at either an ad valorem or flat rate depending on the nature of the document. In this article, we&#8217;d explain how stamp duty charges in Nigeria are calculated and other relevant information on stamp duties in Nigeria.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-295620\" src=\"https:\/\/nigerianfinder.com\/wp-content\/uploads\/2023\/07\/How-to-Calculate-Stamp-Duty-Charges-in-Nigeria-.jpg\" alt=\"How to Calculate Stamp Duty Charges in Nigeria\u00a0\" width=\"598\" height=\"405\" srcset=\"https:\/\/nigerianfinder.com\/wp-content\/uploads\/2023\/07\/How-to-Calculate-Stamp-Duty-Charges-in-Nigeria-.jpg 598w, https:\/\/nigerianfinder.com\/wp-content\/uploads\/2023\/07\/How-to-Calculate-Stamp-Duty-Charges-in-Nigeria--591x400.jpg 591w\" sizes=\"(max-width: 598px) 100vw, 598px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">How to calculate stamp duty charges in Nigeria would be discussed below:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">What is Stamp Duty?\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Stamp duties are a type of tax that is imposed on written and electronic instruments relating to an act performed or required to be performed in Nigeria. The Stamp Duties Act (SDA), Cap 8, Laws of the Federation of Nigeria 2004 as amended, is the statutory law governing stamp duties in Nigeria.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Stamp Duties Act, all instruments relating to transactions to be performed in Nigeria (whether or not executed in Nigeria) are subject to stamp duty, except those specifically exempted under the SDA.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">How to Calculate Stamp Duty Charges in Nigeria\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Stamp Duties Act provides that stamp duty charges may be levied at a fixed flat rate or ad valorem rate depending on the type or nature of the instrument. Ad valorem rate connotes &#8220;according to value&#8221;, therefore, an ad valorem rate is based on the value of the transaction.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To help you understand how to calculate stamp duty charges, we&#8217;d provide two tables, one indicating dutiable instruments charged at a fixed flat rate, and the other would show dutiable instruments that are charged at an ad valorem rate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Below is a table indicating dutiable instruments charged at a fixed flat rate and the applicable stamp duty rate as provided by the Stamp Duties Act:\u00a0<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Type of Instrument\/Document<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Type of Applicable Stamp Duty Charge\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Stamp Duty Rate\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Admission as a barrister or solicitor\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Flat\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N50<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Affidavit, Affirmation, and Statutory Declaration\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Flat<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45 Kobo\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Agreement under hand\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Flat\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15 Kobo<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Agreement under seal\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Flat\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N3<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Appointment of trustee<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Flat<\/span><\/td>\n<td><span style=\"font-weight: 400;\">50 Kobo<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Charter party agreement\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Flat\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">9 Kobo\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Contract (Except other contracts specifically charged with stamp duty in the SDA)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Flat<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15 Kobo<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Deed of any kind not described in the schedule to the Act<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Flat<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N3<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Power of attorney<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Declaration of any use of trust<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Flat<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Flat<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3 Kobo\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">N3<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Below is a table indicating dutiable instruments charged at an ad valorem rate and the applicable stamp duty rate as provided by the Stamp Duties Act:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Type of Instrument\/Document<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Type of Applicable Stamp Duty Charge<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Stamp Duty Rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Appraisement or valuation of property<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1.50%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Assignment by way of security<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0.38%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Assignment upon a sale or otherwise<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1.50%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Bill of sale<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1.50%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Bond<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0.38%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Contract Note<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0.08%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Conveyance or transfer by way of security\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0.375%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Conveyance or transfer on sale of any property\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1.50%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Debenture<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0.375%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Lease<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0.78% if lease period is not more than 7 years<\/span><\/p>\n<p><span style=\"font-weight: 400;\">3% if lease period is between 7 and 21 years<\/span><\/p>\n<p><span style=\"font-weight: 400;\">6% if lease period is over 21 years<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Loan capital<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0.125%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Marketable securities\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2.25%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Mortgage<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0.38%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Increase in share capital\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0.75%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Insurance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ad valorem<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0.08%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What Parties Are Responsible for Stamping Dutiable Instruments?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Stamp Duties Act does not expressly indicate the party required to ensure a dutiable instrument is stamped in all cases. However, there are certain documents that the SDA expressly mentions the party is liable to a penalty for not stamping the document(s).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Below is a table showing various documents and the parties obligated to stamp them as provided by the SDA:\u00a0<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Type of Document\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Party Responsible for Stamp\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Lease\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Lessee<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Settlement<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Settlor<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Conveyance on Sale\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Vendee or transferee<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Mortgage bond, debenture, covenant and warrant of attorney to confess and enter up judgement<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The mortgagee or obligee in the case of a transfer or re-conveyance, the transferee, assignee or disposee or the person redeeming the security<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Bond, Covenant or Instrument of any kind whatsoever<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The Obligee, Covenantee or the person taking the security<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Conveyance or transfers operating as voluntary dispositions inter-vivos<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Grantor or transferor<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">What is the Penalty for Late Stamping?\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When dutiable instruments are not stamped within the time stipulated by the Stamp Duties Act due to failure to pay stamp duties, an offence is committed. Below is a table showing the penalty and interest for late stamping:\u00a0<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">Penalty<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Interest<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Where stamp duty is not more than N20<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N20<\/span><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Where stamp duty is more than N20<\/span><\/td>\n<td><span style=\"font-weight: 400;\">N20<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10% interest per annum from the day of first execution up to the unpaid duty. After 10 years, once cumulative interest is 100% of the unpaid duty, no further interest is charged<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">There are other penalties for other acts of non-compliance as provided by the Stamp Duties Act. When companies execute instruments without complying with the guidelines provided in the SDA, there is a risk the FIRS may apply according to the penalty provision of the Federal Inland Revenue Service Establishment Act, which is a 10% penalty and interest at the CBN minimum rediscount rate plus a spread as announced by the Finance Minister.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Aside from the penalties discussed above, failure to stamp dutiable instruments intended to be used in civil proceedings renders such instruments non-admissible as evidence.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What Are the Modes of Stamping Instruments?\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Dutiable instruments mentioned above can be stamped in the following ways:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employing a die impressed on an instrument\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Affixing printed adhesive stamps issued by the Nigerian Postal Service\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Direct electronic printing or impression on the instrument<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electronic tagging\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Issuance of stamp duties certificate\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any other form of acknowledgement of payment for Stamp duties adopted by the FIRS<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h2><span style=\"font-weight: 400;\">What Agency is Responsible for Collecting Stamp Duties in Nigeria?\u00a0<\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The FIRS is responsible for collecting stamp duties on instruments relating to transactions or matters executed between corporate bodies, or between a corporate body and an individual, group or body of individuals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When instruments are executed between individuals, relevant state tax authorities are responsible for the collection of stamp duties.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Taxes are paid on written and electronic documents, such as agreements, contracts, receipts, etc., relating to an act performed or &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"How to Calculate Stamp Duty Charges in Nigeria\u00a0\" class=\"read-more button\" href=\"https:\/\/nigerianfinder.com\/how-to-calculate-stamp-duty-charges-in-nigeria\/#more-295619\" aria-label=\"More on How to Calculate Stamp Duty Charges in Nigeria\u00a0\">Read more<\/a><\/p>\n","protected":false},"author":2534,"featured_media":295620,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/nigerianfinder.com\/wp-content\/uploads\/2023\/07\/How-to-Calculate-Stamp-Duty-Charges-in-Nigeria-.jpg","jetpack_shortlink":"https:\/\/wp.me\/p6w1sx-1eU3","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/posts\/295619"}],"collection":[{"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/users\/2534"}],"replies":[{"embeddable":true,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/comments?post=295619"}],"version-history":[{"count":1,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/posts\/295619\/revisions"}],"predecessor-version":[{"id":295621,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/posts\/295619\/revisions\/295621"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/media\/295620"}],"wp:attachment":[{"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/media?parent=295619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/categories?post=295619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nigerianfinder.com\/wp-json\/wp\/v2\/tags?post=295619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}