Stamp duty is an instrument tax charged on written or electronic documents whether executed in Nigeria or not, except such instruments are specifically exempted under the Stamp Duties Act (“SDA”). The Schedule to the SDA provides a list of dutiable documents and the applicable stamp duty rates, which may be levied at a fixed (flat amount) or ad valorem (percentage of the value of the transaction) rate. Any agreement/contract not specifically provided under the SDA is to be stamped at a nominal rate of 15 Kobo.
On 20 July 2020, the Federal Inland Revenue Service released a Public Notice which summarised categories of dutiable instruments and their corresponding stamp duty rates. This included a charge of 1% stamp duty on contracts, where the contracts do not have specified rates.
In this article, we have examined the legality of the 1% rate. Read our Article below:
Download PwC Article - 1% stamp duty rate on contract agreements - constitutional or otherwise