THE TAXAIDER NEWSLETTER VOL 2, ISSUE 6 (June 2020)

First Thoughts: The Glass Half Full

In recent times I have seen and heard reactions from a lot of people I know concerning how the year has turned out in a way most didn’t quite envisage. Some have even wished they had magic wands they could wave and make the entire year disappear or perhaps, restart. I would confess that I was one of these people for a while. Many of us had very high hopes for 2020 just like we always do at the beginning of every New Year. 2020 was quite significant however; perhaps because of the way it sounds when you pronounce it. At least, 2020 sounds a whole lot better than 2019 (or any other year before now) on the lips, don’t you think?

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Personal Income Tax (PIT) Savings Option Part 2: National Housing Fund (NHF) – Jennifer Ezediaro

Introduction:

In the first part of this series; ‘How to Reduce Your Personal Income Tax (PIT) Liabilities: The Voluntary Pension Contribution (VPC) Option!’ we discussed how Voluntary Pension Contribution (VPC) can be a Personal Income Tax (PIT) savings option as it is a tax-deductible contribution. We also went further to explain the benefits of making the VPC to the contributor and how to contribute. In today’s piece, we will be looking at another Personal Income Tax savings option: National Housing Fund (NHF).

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How to Stay Ahead of the Personal Income Tax (PIT) Filing Deadline

As you may know, the 2020 Personal Income Tax (PIT) Returns filing season is upon all tax residents of Lagos State. As you may also recall, the Lagos State Internal Revenue Service (LIRS) had extended the deadline for 2020 PIT Returns filing from the statutory Monday, March 30, 2020 to Tuesday, June 30, 2020 (https://taxaide.com.ng/2020/05/21/lirs-notice-on-extension-of-2019-pit-returns-filing/) as a palliative in the face of the global health pandemic. We provide below, some information and updates on the compliance requirements of the 2020 PIT Returns filing process in Lagos State.

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2020 Annual Letter to Stakeholders

Dear Stakeholder,

Of Evolution and Profitability; the Positives in Negatives

Thank you for another year. We have progressed; particularly, we have progressed at learning daily. This sums up our meaningful evolution. Outcomes were preset, some were achieved and some not; most importantly however, we knew which was which. Our consciousness of and the ability to rightly respond to preconceived expectations; especially aided by observable data and intelligent information sums up our crawls, walks, runs and the increased acceleration for flight. We are yet to fly.

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What you need to know about Capital Gains Tax in Nigeria

Capital Gains Tax (CGT) is a tax on the profit obtained from disposal or exchange of certain kinds of assets. In Nigeria, CGT is charged at a flat rate of 10% of chargeable gains. It is governed by Capital Gains Tax Act, Cap C1 LFN 2004 (as amended). All chargeable assets are subject to Capital Gains Tax when disposed at a gain, except those specifically exempted by the Act.

Here are the tax incentives on CGT in Nigeria including the relevant incentives in the Finance Act, 2019:

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