N50 Stamp Duty: Banks begin execution, lists exemptions but still have many issues unanswered

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Friday, January 29, 2016 07:55 PM / TheAnalyst
 

Effective January 15, 2016, the N50 Stamp duty charge introduced by the Central Bank of Nigeria will take effect by all Nigerian Banks.
 

Statements have been issued out by all banks to their customers via e-mails and alerts.
 

This is expected to apply to beneficiary and recipient of funds via cash deposit, cheque deposit or electronic transfers of N1000 and above.
 

There were no guidance or clarifications on how to comply with the burden created by the requirement for a NIPOST appointed agent to vet books of entities as part of agency enforcement.

Exceptions

The following transactions are exempted from the charge; viz:

·         saving accounts;

·         salary accounts; and

·         transfers to own account within or outside the bank.
 

 

Grey Areas awaiting clarifications 

The Ministry of Finance, Central Bank of Nigeria, NSE, SEC and NIPOST or/and relevant government agencies have remained silent on issues related to:

·         Online transactions and e-commerce related dealings;

·         Payments for Pensions;

·         Payment for investment related transactions like securities, money market transactions etc:

·         Payment for Government related Fines;

·         Payments to Courts for Stamp Duties;

·         Payments on purchase of FX;

·         Payments to Government for rates, levies and annual dues;

·         Payment for Tax Duties; and

·         Payments on stamp duty exempt transactions.
 

We will update this advisory as soon as more information is provided.
 

 

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