In the absence of a formal agreement in support of a transaction, any electronic correspondence proving the transaction forms the basis of stamp duty. « Except as otherwise provided above and subject to the provisions of section 90(3) of this Act, any documented document executed in Nigeria or relating to property located in Nigeria or to thing done or to be done or done in Nigeria, except in the course of criminal proceedings, shall not be presented as evidence or be available for any purpose. unless it is duly stamped in accordance with the legislation in force in Nigeria at the time of its first execution. (b) 30 days for documents on which stamp duty is levied; or the collection of the EMTL does not preclude the levying of stamp duty on transactions that would otherwise be subject to stamp duty. In further clarifying the new directive, the FIRS also mentioned that stamp duty on rent or leasing only applies to new contracts and not to renewals. Thus, if a new agreement is prepared when the lease is renewed, this document must be stamped and the applicable stamp duty paid, just like the original agreement. However, if the renewal conditions are already included in the original agreement, so that no new documents are created, but only the rent for the renewal is paid, no stamp is required in this regard. This means that « electronic documents » are now subject to stamp duty and stamp duty must be paid within 30 (thirty) to 40 (forty) days of their execution or, if exported from Nigeria, within 30 (thirty) days of receipt in Nigeria. The circular addresses, inter alia, issues related to customs receipts, online transactions not supported by official documents, determination of electronic documents received in Nigeria for stamp duty purposes, e-money transfer tax, contract stamping time, compliance procedures and penalties for non-compliance. The circular aims to clarify compliance and ease of administration. For electronic documents received in Nigeria, in accordance with Articles 7 (3) (a), 23 (3) and 47 SDA, documents, receipts or acts exported outside Nigeria but received in Nigeria must be submitted for stamping: on the other hand, the circular provides that an electronic document, receipt or instrument issued outside Nigeria must be received in Nigeria: when it is recovered or recovered in or from Nigeria; it (or an electronic copy thereof) is stored on a device (including a computer, magnetic storage, etc.) and brought to Nigeria; or it (or an electronic copy thereof) is stored on a device or computer in Nigeria. According to the illustrations in the circular, it was clarified that if electronic records of a transaction made outside Nigeria and stored on a server outside Nigeria are downloaded in Nigeria, the electronic instrument would have been received in Nigeria and would be subject to stamp duty accordingly. It follows from the foregoing that an electronic record of each transaction subject to stamp duty is considered to be an electronic document on which stamp duty is collected and paid. Electronic documents can be agreements concluded via email and other online applications such as WhatsApp, as well as contracts executed through electronic signatures.
With respect to electronic documents issued abroad that are considered to have been received in Nigeria because they were uploaded and accessed in Nigeria, it is not clear how FIRS intends to verify when an electronic document has been received in Nigeria for the purpose of assessing and enforcing the payment of stamp duty. From a practical point of view, it is not clear how the stamp duty branch of FIRS intends to determine when an electronic document is received in Nigeria in order to trigger and enforce the payment of stamp duty in this regard. Section 2 of the HPA was amended to extend the scope of stamp duty instruments to « any written document and any electronic document ». In addition, the circular stipulates that companies, including ministries, departments and agencies (MDAs), are required to collect and transfer stamp duty on all contracts awarded to third-party service providers. The rate to be calculated for such a contract is 1% of the value of the order excluding VAT. Finally, the circular provides that non-compliance with the HPA may result in criminal prosecution and the payment of sanctions to varying degrees; the impossibility of using the instrument in question as evidence in judicial or other judicial or quasi-judicial proceedings; or enforcement measures, etc. (vi) Any other form of confirmation of payment of stamp duty accepted by the FIRS. The aim is to inform all contractors and sellers of the Nigeria Deposit Insurance Corporation (NDIC) that the company has started deducting stamp duty (1%) levied on all contractual arrangements under the Stamp Duty Act 2004. The 1% of the contract amount is deducted at source and transferred to federal inland revenue services (FIRS). All contracts must be stamped no later than 14 days after their execution. In this context, taxpayers can log in to the portal on the stamp duty website to pay stamp duty and receive electronic confirmation that stamp duty has been paid.
It is also important to note that the FIRS has specified outside the circular that stamp duty is payable on rental or leasing contracts, the rate of stamp duty varying from less than 1% to 6% depending on the duration of the contract as follows: for a period of less than 7 years at a rate of 0.78%, 7 to 21 years at a rate of 3%; and those aged 21 and over at a rate of 6%. FIRS has also asked landlords and real estate agents to levy stamp duty on all rental and rental agreements with tenants and property buyers and to transfer them. (ii) affix printed adhesive marks (issued by the Service) to the instruments; (i) the use of an embossed matrix on an instrument as an adhesive buffer; All contractors and sellers should also note that non-transfer or late payment will result in a fine, as required by the Stamp Duty Act. The 3. In June 2021, the Nigerian tax authority, the Federal Inland Revenue Service (FIRS), issued Information Circular No. 2021/12 entitled « Clarifications on the Provisions of the Stamp Duty Act » (the Circular). .
