Cost of stamp duty on new shares in nigeria

In Nigeria, the cost of stamp duty on new shares is a percentage of the value of the shares being issued. The rate of stamp duty varies depending on the type of shares being issued and the value of the shares.

According to the Stamp Duties Act, 2004, the rates of stamp duty on shares are as follows:

• For shares with a face value of N50,000 or less, the stamp duty rate is 0.075% of the face value.
• For shares with a face value of N50,001 to N100,000, the stamp duty rate is 0.10% of the face value.
• For shares with a face value of N100,001 to N500,000, the stamp duty rate is 0.15% of the face value.
• For shares with a face value of N500,001 to N1,000,000, the stamp duty rate is 0.20% of the face value.
• For shares with a face value of N1,000,001 and above, the stamp duty rate is 0.25% of the face value.

For example, if a company issues new shares with a face value of N500,000, the stamp duty would be:

• 0.15% of N500,000 = N750

So, the total cost of the shares would be N500,000 (face value) + N750 (stamp duty) = N500,750.

It's worth noting that these rates are subject to change, and it's always best to check with the relevant authorities or a tax professional to confirm the current rates and any applicable exemptions or deductions.