Nigerian Stock Exchange (NSE) has again announced a revision of Stamp Duty on securities transactions to 0.08% from 0.075%, with effect from December 7, 2020.
NSE said the upward review is necessitated by the classification of Contract Notes as an ad valorem tax by the Federal Inland Revenue Service (FIRS).
“As a responsive self-regulatory organization, The Exchange is committed to enforcing rules and ensuring compliance with regulations and other applicable government requirements.
“While it had maintained a stamp duty rate of 0.075% in line with what was obtainable in the Nigerian capital market, it is imperative that the FIRS’ stamp duty regime of 0.08% on securities transactions is applied. To this end, the Central Securities Clearing System Plc (CSCS) will adjust its system to implement the automated deduction of the Stamp Duty rate of 0.08% from Monday, 7 December 2020.
“The Exchange has also issued the requisite guidance to Dealing Member Firms to put in place the necessary measures to ensure compliance and communicate this change to investors in a timely manner,” NSE said.
The Exchange also informed capital market operators and other stakeholders requiring further information to refer to the market circular it earlier issued on November 17, 2020 captioned “Administration of Stamp Duty on Securities Transactions”, which it added can also be accessed on its website.