Stamp duties are basically taxes paid on instruments and not on verbal agreements that are not documented, which is also known as oral transactions.
Some transactions especially ones in respect of land must be evidenced in writing. Section 4 of the statute of fraud, renders void, any transaction in respect of land that is not in writing.
Documents that have stamp duty are the only documents that will be accepted as authentic instruments of defence in the court of law.
The law that regulates the Stamp duties Administrations or process of stamping instruments in Nigeria today is the Stamp Duties Act, Cap S8, Law of the Federation of Nigeria (LFN) OF 2004…Section 4 subsection (2) stipulates the authority for STATES to collect duties in respect of instruments between persons or individuals at rates imposed and agreed with the Federal Government.
Section 4(2) of the Stamp duties Act stated that the Government has authority to collect Stamp duty in respect of documents executed between Individuals, Partnership or Enterprises.
Stamp duty is chargeable either on FIXED RATE or AD VALOREM depending on the class of instrument. Stamp duty rate is chargeable on Ad valorem document at the rate of 0.5%.
The payment of stamp duties will be evidenced with an embossed stamp or the inscription of the stamp duty logo on all instruments and documents.
PAY YOUR STAMP DUTIES TO VALIDATE YOUR RECEIPTS AND OTHER DOCUMENTS.
IT PAYS TO BE LAW ABIDING.