THE Federal Inland Revenue Service, on Tuesday, warned taxpayers against evading Stamp Duty payment
To check the incidence of tax evasion, the Service also release information to guide the general public on rates payable as stamp duty.
The release of the rates followed several requests by taxpayers, seeking clarifications on the current administration of Stamp Duties Act in the country.
The clarification guide is contained in a Public Notice signed by the Executive Chairman, FIRS, Muhammad Nami.
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, Promissory notes, Insurance policies and others stipulated in the Schedule to the Stamp Duties Act.
It is also chargeable on both physical and electronic instruments through 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.
Nami, according to statement issued by the Director, Communications and Liaison Department, FIRS, Abdullahi Ismaila Ahmad, listed no fewer than 50 types of chargeable transactions, which required stamp duty.
Some of the chargeable transactions are bank deposit or transfer, loan agreement, Memorandum of Understanding related to land, sales agreement, will, tenancy/lease agreement and all receipts.
Nami also clarified that the recently launched FIRS Adhesive Stamp was not the same as the 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.
He said, “The burden of payment of stamp duties, whether fixed or ad-valorem, is that of the beneficiaries of a contract, or Money Deposit Banks’ customer who transfer an amount of N10,000 and above from his account to another customer’s account.
“It is the responsibility of Ministries, Departments and Agencies, Money Deposit Banks, Companies, Landlords, Executors, etc. to ensure that service providers, contractors, tenants etc. pay stamp duties due on agreements, receipts and other dutiable instruments.
“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).”
