January 18, 2021/Proshare

By PwC Nigeria 

Stamp duty is a tax on instruments (written or electronic documents). The Stamp Duties Act Cap. S8 LFN 2004 (“SDA” or the Act”) can be traced to the 1893 Stamp Duties and Stamp Duties Management Acts passed by the British Parliament. It was enacted and came into force on 1 April 1939. 

The Act, amongst other things, imposes stamp duties on written or electronic instruments (agreements, contracts, receipts etc.). Under the Act, stamp duties may be levied either at an ad valorem or flat rate depending on the type or nature of the instrument. 

The Finance Act 2019 (“the FA 2019”), particularly section 52, expanded the scope of the SDA to capture electronic transactions. The FA 2019 (in section 54) also expressly introduced stamp duties on bank deposits and transfers.

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