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Savings Accounts Not Exempted from Stamp Duty Charges, Says FG - THISDAY

FEBRUARY 17, 2020

Dike Onwuamaeze

The federal government has clarified that  deposits into savings accounts that is up to N10,000 are not exempted from the payment of N50 stamp duty under the Finance Act of 2020.

Director General of Budget Office of the Federation, Mr. Ben Akabueze, said in Lagos at the weekend that the Finance Act, 2020 did not make any distinction to that effect.

He spoke in Lagos at the weekend during the KPMG Nigeria’s Tax Breakfast Seminar on 2020 National Budget and Finance Act.

“The Finance Act makes no distinction between savings and current accounts. So, if people are now planning to become owners of savings account, let them know that it won’t work,” Akabueze said.

Also at the occasion, Executive Chairman of the Federal Inland Revenue Services (FIRS), Mr. Muhammad Nami, warned owners of businesses who would divert payments due to their businesses to their  personal accounts, saying they should not get away with the unwholesome act as FIRS has the software to trace such diversions with account holders’ BVN.

Nami also said filing of returns on goods and services consumed in 2019 but were paid for after the Finance Act of 2020 came into effect would be computed at the old Value Added Tax (VAT) rate of five per cent.

“I think that is the way to go for now. But for every service that was consumed from February 1, 2020, will be charged the new VAT rate of 7.5 per cent,” he said.

He added that the FIRS and the Federal Ministry of Finance, Budget and National Planning would issue a public statement to clarify the confusion trailing the issue of taxation of a foreign business with significant presence in Nigeria.

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