10 Things You Need To Know About The New CBN N50 Stamp Duty

image

As expected, many Nigerians have expressed
their dissatisfaction on the announcement by
CBN instructing all DMBs (Deposit Money Banks)
in the country to place a N50 charge on every
transaction from N1,000.
In order to avoid any further confusion,
here is what you need to know about the
CBN’s N50 stamp duty:
1. It is an Act that was passed into law
called the Stamp Duties Act 2004 and
Federal Government Financial Regulations
2009, but now being implemented in 2016.
2. The Stamp Duty charge is not being
imposed by the Banks, but by the Federal
government through the CBN.
3. The imposition of the Stamp Duties Act at
this time is to enhance the governments
revenue generation drive which has become
necessary due to the fall in global oil prices.
4. All receipts, whether Cash or Electronic
transfers from N1000 and above into a
Current account is eligible and will be
charged N50 stamp duty.
5. Only Current accounts are eligible to be
charged Stamp Duty on all receipts.
6. The following receipts are exempted from
the imposition of Stamp Duty:
– Deposits or Transfers made by SELF i.e
“You yourself” into another account in the
same bank and/or other banks.
– Any Transfers into a Savings account.
– Any Withdrawals from a Savings account.
7. The Stamp Duty is charged only to the
receiving account i.e. the account receiving
the money.
8. The N50 Stamp Duty will be charged per
transaction and not per volume; that is any
transactions from N1,000 and above.
9. The monies collected does not belong to
the Banks, but the Federal Government. The
Banks are only a channel for collecting and
remitting the money to the Federal
Government.
10. Under the schedule to the Stamp Duty
Act 2004, other exemptions specified
includes payments of salaries and wages
etc.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s