The Nigerian Stock Exchange (NSE) has announced that Stamp duty on transactions in its platform will now be done at a rate of 0.08 per cent.
The Exchange made the clarifications on the public notice released by the Federal Inland Revenue Service (FIRS) in July, itemising contract notes at an ad valorem rate of 0.08 per cent up from 0.075 per cent while stating that it would be effective by December 7, 2020.
“In reference to the Public Notice in one of the National Dailies Monday, July 20, 2020, captioned ‘Clarification of Administration of Stamp Duties in Nigeria’ issued by the Federal Inland Revenue Service (FIRS) (A copy is attached as Appendix A for ease of reference).
The Public Notice provided, amongst other things, information on dutiable instruments and the applicable flat or ad valorem rates, with Contract Notes 1 itemized at an ad valorem rate of 0.08 per cent.
As you know, this is at variance with the current rate of 0.075 per cent administered in the Nigerian Capital Market.”, the Exchange said. The notice further said, the Central Securities Clearing System Plc. (CSCS) will adjust its system to implement the automated deduction of the Stamp Duty rate of 0.08 per cent while adding that dealing members are expected to communicate the information to their clients.
