Stamp duty charges in Nigeria 2020.
It came to my notice that some quite number of account holders in Nigeria, are not aware of the stamp duty charges on both savings and current account.
You can call it stamp duty charges in Nigeria or may be tax levied on bank account owners in Nigeria.
Well this was argued because it come after the minimum wage and tax increasement brouhaha.
Had a discussion with one of the readers who was asking if it is legal that his bank (access bank) charged him for money received in his account, and labeled it stamp duty.
- Stamp duty is a type of tax, levied on financial transactions in Nigeria
- The tax is levied on the recipient that is the person receiving funds to his or her account
- The Stamp duty charges in Nigeria fee is N50 per transaction above N10,000
- It was approved on september 2019, after a circular by the central bank were shared to all deposit banks in Nigeria
- It took effect on the month of February and March 2020
I know there are some Nigerians that have been trying to figure out and understand why their bank charge them N50 fee for amount received in their account.
That N50 fee is called stamp duty charges in Nigeria.
Let me further explain what is all about starting from what stamp duty is all about.
Definition or meaning
Stamp duty charges in Nigeria 2020.
This is a tax, in form of an instrument by the government which is levied upon the public or account holders on certain amount of transaction.
Under the stamp duty act in Nigeria, Instruments that are required to be stamped under the Act must be stamped within 40 days of first execution.
The central bank of Nigeria (CBN) had in September issued a circular to all the commercial banks in Nigeria on September 17, 2019, authorising them to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions.
And since the month of February, the charges took effect though i noticed that some banks suspended it because of the issue at hand.
Stamp duty charges in Nigeria
The stamp duty charges in Nigeria is based on the fact that if a bank customer receives funds through the means of electronic transfer or teller deposit, he or she will be charged a fee of N50 if the money is above N10,000 respectively.
If you’ve received ten thousand naira and above in your account since march, and be it savings or current, you’ll notice that a sum of N50 was deducted from your account.
If you care to check more, you’ll see that it was labeled stamp duty charges.
Some of us may not really understand what it is all about and never care to find out, while some might think that their bank is deducting their money illegally.
This post which is stamp duty charges in Nigeria will make you to understand that there’s no illegal deduction on the aspect of the banks, cause they are working according to directives.
Some of you who may not have understood what i’m talk about, if you have your bank mobile app on your smartphone, open the application.
Go to transaction history and check on the funds received in your account.
You’ll notice that funds above N10,000 attracted a fee of N50 which was labeled stamp duty in Nigeria.
And that’s the tax i’m talking about.
I remember when nysc paid it’s corpers N33,000 alawee, they were so excited, but something got the attention of some of the corp members.
N50 were deducted from the alawee and in the name vat.
I can recall that my cousin wasn’t pleased with that and kept on telling me that they were paid N32,950 though it states N33k.
It was called vat and it is very much applicable to all government workers in the country.
According to the central bank of Nigeria, the circular issued to all commercial banks stated that;
Any electronic receipt for, or electronic transfer of, money deposited with any bank or with any banker in any type of account of an amount from N10,000 upwards shall attract a singular or one-off duty of the sum of N50.
“Stamp duty upon receipt (written, printed or in electronic form) for transactions between corporate bodies or between a corporate body and an individual, group or body of individuals, which amounts to N10,000 and above, shall be denoted by payment of N50 per receipt to the service.”
So you should note that receipts, either printed or electronically generated, or any form of electronic acknowledgement of money transactions, will attract the stamp duty charges of N50.
With this latest development, but the recipient and the sender are taxed or charged N50 for every money transaction performed.
If you received twenty thousand naira like up to five times in a day, you’ll be charged N1000 which is fifty times 20.
However, if you receive one hundred thousand naira per transaction, you’ll be charged N50 for the transaction.
Report has it thar some banks are charging N50 for a transaction of N1000 and above, and which is very very wrong.
Seriously if your bank is charging you N50 per N1000 received in your savings account, you should immediately lay down a complaint.
The law states that the stamp duty charges in Nigeria is N50 per a transaction of N10,000 and above.
But i got to notice that zenith bank isn’t charging their customers on funds received in their savings account.
Also, the bank reduced their transfer charges to ten naira, seventy five kobo (N10.75) because of the pandemic and the lockdown.
I noticed that gtbank also charges the same amount on money transfer, but the amount must be N5000aand below.
Any amount above five thousand naira attracts a transfer fee of N25 plus N1.85 on vat, making it a sum total of N26.85 respectively.
Again if you noticed that your bank has been charging you N50 for stamp duty charges in Nigeria, you need not to panic thinking that they are stealing from you.
It is a tax levied upon bank customers in Nigeria.
To further learn more about bank charges in Nigeria 2020, you can go through this post which talked about the charges in Nigeria which includes money transfer fee, pos charges, current and domiciliary account charges as well.
If you have any suggestion to make based on the topic of the post stamp duty charges in Nigeria, will appreciate it a lot.