15 July 2021 Nigerian Tax Authority issues guidance on Stamp Duties compliance On 3 June 2021, Nigeria’s Tax Authority, the Federal Inland Revenue Service (FIRS) issued Information Circular No: 2021/12 titled “Clarifications on the provisions of the Stamp Duties Act” (the Circular). The Circular is the latest in a series of publications by the FIRS providing clarifications and guidance to taxpayers on the administration and compliance related to stamp duties in Nigeria. The Circular replaces the prior Information Circular of 2020/05, dated 29 April 2020. Among other issues, the Circular addresses matters relating to dutiable receipts, online transactions not supported by formal documentation, determination of electronic documents received in Nigeria for stamp duty purposes, the Electronic Money Transfer Levy, time for stamping contracts, compliance procedures and punitive measures for non-compliance. The Circular is intended to provide clarity for compliance and ease of administration. These include any note, memorandum or writing where any money is acknowledged to have been received or any debt or demand is acknowledged to have been settled or discharged whether signed or not. These could be printed or written, available in an e-mail or short message service (SMS) or any other electronic media, web or internet-based messaging. Where no formal agreement is drawn to support a transaction, any electronic correspondence evidencing the transaction shall be the basis for stamp duties. An electronic document executed outside Nigeria is received in Nigeria if it is stored in, retrieved or accessed from any electronic device or computer in Nigeria. This is a NGN50 levy payable by the recipient of any electronic transfer or money deposit of an amount from NGN10,000 or greater transferred/deposited in any deposit money bank or financial institution. The charge of the EMTL does not preclude the charge of stamp duty on any transaction that would otherwise be subject to stamp duty.
Document ID: 2021-1358 |
