Mortgage Stamp Duty Charges Directive from FG
A recent directive from the Federal Government instructs Deposit Money Banks to commence immediate deduction of a 0.375% stamp duty charge on all mortgage-backed loans and bonds.
Mortgage-backed loans involve financial institutions extending loans to individuals or entities for home purchases, with repayment over time with interest, while bonds are debt securities issued by various entities to raise capital.
This new mandate, relayed to customers by banks as per the Federal Inland Revenue Service, expands the stamp duty charges to cover foreign transactions and loans, in addition to regular bank transfers, aligning with the tax authority's efforts to improve fiscal performance.
In a related development, banks were previously instructed in January to deduct stamp...