Stamp Duty (SD)
- It is governed by Stamp Duties Act, CAP S8, LFN 2004 (as amended)
- It is administered on written documents only
- It is administered by both FIRS, FCT and respective States Internal Revenue
- FIRS assesses and collects duties on documents executed between a company and an individual, group or body of individuals
- FCT and States Internal Revenue Service(IRS) assess and collect duties on documents executed between persons or individuals
- A Commissioner of Stamp Duties adjudicates on the amount of duty payable on instrument (Adjudication is the process of determining the correct amount of duty payable on an instrument)
Forms of Stamp Duties
- Fixed Duties- duties that do not vary with consideration, e.g. duties on payment receipt, proxy forms, guarantor forms, etc.
- Ad-valorem- Duties that vary with consideration, e.g. duties on Share Capital, Deed of Assignment, Debenture, Bills of Exchange, etc.
- Methods of stamping: Embossing with die, Affixing adhesive stamp and Affixing postage stamp in lieu of adhesive stamp
- Duties are paid before documents are executed