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Stamp Duties

Transaction TaxLast Updated: 2025-12-12

What are Stamp Duties?

Stamp Duty is a tax charged on written or electronic documents (instruments) to give them legal backing.

  • The Golden Rule: If a document is not stamped, it cannot be tendered as evidence in court. Stamping validates your agreements.

Who Collects It?

  • FIRS: For transactions involving companies.
  • State IRS: For transactions between individuals.

Two Types of Duties

1. Flat Rate Duties

A fixed sum charged regardless of the transaction value.

  • Guarantor's Form: ₦500
  • Appointment of Receiver: ₦500
  • Memorandum of Understanding (MoU): ₦1,000

2. Ad-Valorem Duties (Percentage Based)

Charged as a percentage of the value stated in the document.

  • Tenancy / Lease Agreements:
    • < 7 years: 0.78%
    • 7 to 21 years: 3%

    • 21 years: 6%

  • Contract Agreements: 1%
  • Legal Mortgage: 0.375%
  • Share Transfers: 0.75%

The Electronic Money Transfer Levy (EMTL)

This is the "Stamp Duty" you often see on your bank alerts.

  • Rate: ₦50 flat charge.
  • Trigger: On any deposit or transfer of ₦10,000 or more into a bank account.

How to Pay & Stamp

For Physical Documents:

  1. Calculate: Determine the duty payable (self-assess or ask the tax office).
  2. Pay: Remit to FIRS (via Remita) or State IRS.
  3. Stamp: Take the payment receipt and the document to the Stamp Duties Commissioner at the tax office. They will impress a Red Stamp or affix a stamp on the document.

For Electronic Transactions (EMTL):

  • Automatically deducted by your bank.

Frequently Asked Questions

I paid my landlord rent. Who pays the stamp duty?

Technically, the burden is on the beneficiary (the Landlord), but the tenant often pays to ensure the tenancy agreement is legally binding for their own protection.

Can I use a postage stamp?

No. You must use FIRS/State adhesive stamps or getting it machine-pressed at the tax office. Postage stamps are for mail.

References & Resources