CITN clarifies stamp duty and tax reforms on bank transfers
The Chairman of the Chartered Institute of Taxation of Nigeria, Abuja District, Ben Enamudu, has clarified that bank balances are not taxed under the new tax regime. He emphasized that only certain electronic transfers attract a ₦50 stamp duty, with reforms aimed at protecting low-income earners. Enamudu explained that several transactions, including salary payments and transfers below ₦10,000, are exempt from the charge. The law is already in effect, with changes to who bears the cost of the duty and additional reliefs for rent and essential goods.
What we know
- Ben Enamudu stated that there is no tax on bank balances; only electronic transfers attract a ₦50 stamp duty.
- Transfers below ₦10,000, salary accounts, and payments of salaries are exempt from the stamp duty.
- The sender now bears the cost of the stamp duty, not both sender and receiver, under the new reforms.
- Essential goods and services, such as basic food items, medicals, pharmaceuticals, and education, remain exempt from VAT.
- The act became active on the 4th of January 2026, with new tax laws, including those enacted on June 26, 2025, and others set to commence on January 1, 2026.
