FIRS Directs Banks to Charge 0.375% Stamp Duty on Mortgage-Backed Loan
Deposit money banks (DMBs) in Nigeria have been directed by Federal Inland Revenue Services (FIRS) to begin to charge a 0.375% stamp duty charge on mortgaged-backed loans.
According to information obtained by MarketForces Africa, the new directive is pushed by Federal Inland Revenue Service, amidst efforts of the tax authority to boost fiscal performance.
“We would like to inform you that the FIRS has directed all Nigerian banks to implement stamp duty on certain transactions that require duty payment, such as contracts and legal mortgages.”
Hence, Nigerian banks communicated to their customers that 0.375% would be applied to loans backed by legal mortgages, shares, debentures or bonds effectively immediately.
For example, Access Bank told customers that the rate would be applied on the value of the legal mortgage, shares, debentures or bonds and remitted to FIRS.
The bank however said all previously approved loans will remain unchanged, and would be repaid as per the agreed terms and conditions at the time the deal was closed. How to Begin to Trade Forex: Simple Guide
