Overview
Stamp duties are a critical part of ensuring the admissibility of documents that evidence transactions. Although often regarded as a minimal tax, they remain an integral part of Nigeria's tax framework. The Stamp Duties Act, the principal enactment governing the tax, has long been one of Nigeria's most criticised tax laws, with many of its provisions viewed as outdated and out of step with modern economic realities.
The Finance Act 2019 sought to improve the framework, but debates around the administration of stamp duties continue. Questions remain over which authority should collect stamp duties on bank transactions between individuals, and what rate applies to certain transactions and documents. In response to requests from taxpayers for clarity, the Federal Inland Revenue Service (FIRS) has issued a Public Notice addressing these issues.
This edition of KENNA's tax insights examines the FIRS Public Notice on the administration of stamp duties in Nigeria and explains the key issues it addresses.
