All you need to know about Stamp Duty

You might have heard of stamp duty but never really understood what this may be and why banks charge you this fee when you receive money from other banks.

In this write up, we explainin what stamp duty is and how it affects you as an individual.

So, What is Stamp Duty?

Stamp duty is a tax that is levied on single property purchases or documents by the Government to generate revenue for its programmes and activities. Before digitalisation, physical revenue stamps were placed on these documents to show that the tax liability on the transaction represented in that document has been paid. More modern versions of the tax no longer require an actual stamp.

How does this affect you directly?

Stamp duty is charged on electronic transfers or cash deposits above N10,000 (Ten Thousand Naira) into your account from other banks. This means that for every transfer to your account from other banks, you will be debited a sum of N50 (Fifty Naira) on the total amount of the money received. Electronic transfers include receivables through direct transfers, requests of payments through payment links, and splitting the bills with other bank account holders. Money received from gomoney accounts remains free of charge and will not attract any stamp duty charge.

Who benefits from stamp duty?

Stamp duties are one of the crucial sources of non-oil tax revenue for the Nigerian Government. The government uses this revenue to contribute to planned programmes and activities. As part of compliance, stamp duties are fully remitted to the Federal Government and gomoney does not gain from this charge.

Learn more about the Stamp Duty Act

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