2022 - Taxaide

Company Income Tax in Nigeria: What You Need To Know

A registered business in Nigeria that earns a legitimate income is captured under the Company Income Tax Act (CITA), Cap C21, LFN 2004 (as amended) to pay the tax due from all its revenue sources.

However, the provision of the Company Income Tax Act (CITA), Cap C21, LFN 2004 (as amended) exempts income or profits earned from some particular sources from CIT.

Companies Income Tax (CIT) is a tax collected on the profits of registered companies in Nigeria. This also includes the tax on the profits of foreign companies carrying on any business in any part of Nigeria. CIT is one of the many means through which the country generates revenue. Companies founded in Nigeria which are referred to as Resident companies are liable to remit CIT on their global income while non-residents are required to remit CIT on their Nigeria-source income. Companies Income Tax is based on accounting profits adjusted for tax purposes.

FIRS and NEPZA signed a Memorandum of Understanding – Highlight

The Federal Inland Revenue Service (FIRS) and the Nigeria Export Processing Zones Authority (NEPZA) on the 7^th of June 2022 signed a memorandum of understanding aimed at closing the tax administration gaps in the nation’s free trade zones.

Following the introduction of the Excise Duty (“Sugar Tax”) on non-alcoholic, carbonated, and sweetened beverages by the Finance Act of 2021 at the rate of N10 per liter, the Federal Government of Nigeria, commenced the implementation of Sugar Tax on the 1st of June 2022. Today’s Tax Thursday article covers some facts about the administration of the Sugar Tax that you should know.

Taxaide Professional Services Sensitizes Regulators And Industry Experts On Sugar Tax

Have you ever wanted to be a part of an exciting, vibrant, and dynamic industry? The Sugar Tax Engagement – a stakeholders’ engagement session – is the perfect opportunity. This is a hybrid event that will bring together those who are invested in the Sugar Tax for an engaging discussion on administering Nigeria Sugar Tax

The Sugar Tax was implemented to help reduce the consumption of carbonated drinks to improve public health and also generate the much-needed funds for the government following the financial hit of the covid-19 pandemic. Since its implementation, however, there has been some debate over whether or not the tax has reached its intended goal. This event will bring together those who support and oppose this law to have an honest discussion about what it can do for our community.

TAXATION OF NOT-FOR-PROFIT ORGANIZATIONS- GUIDELINE & CLARIFICATION

A not-for-profit organization is an entity incorporated as a company limited by guarantee under PART A of the Companies and Allied Matters Act (CAMA) 2004 or registered under PART C of the Act, or under any other law in force in Nigeria, or registered under the laws of a foreign jurisdiction and approved as such in Nigeria.

As their name suggests, not-for-profit organizations (NPOs) are established to provide public goods and services or research in areas of altruistic value to society. They are not to carry on business to make profits for distribution to their members.

FIRS PUBLIC NOTICE ON SUBMISSION OF CERTIFICATE OF ACCEPTANCE

A registered business in Nigeria will undoubtedly employ fixed assets to generate income. Revenue generated by any company is also expected to result from the use of assets, which, in turn, benefits the company. In Accounting, this is achieved by taking the total current liabilities, in form of short-term financial obligations from the total assets put to use while we ascertain the profit generated by these assets by taking the Net income against the Average Assets to determine the actual revenue flow into the Company which is as a result of the Capital employed.

Taxation Of Telecommunications Companies: What You Need To Know

Over the years, the Nigerian telecommunications sector has taken a lead role in diversifying the economy of the country. It encourages sectoral growth by using the instrumentality of digitalization that has been brought about by the technological innovations in the telecoms space.

Despite all these, the Telecommunications operators in Nigeria still face prohibitive barriers to seamless implementation of digitalization in the country as they have been reported to be paying more than 40 different taxes and levies to various agencies of the government at the Federal, State, and Local level. According to the Tax and Enabling Business Environment in Telecoms Sector, the payment of all these levies and taxes is reducing the pace at which the sector is expanding in the country and thereby inhibiting digital inclusion and mobile penetration as the cost of all these taxes are mostly passed to the consumers.

THE TAXAIDER NEWSLETTER VOL 4, ISSUE 4 (APRIL 2022)

When you ask people what personal development is, they might give you an answer like “being true to yourself” or “working to become the best version of yourself.” But sometimes, those answers don’t help you understand what it is.

I like to think of personal development as having a little internal dialogue on the matters that matter most. When something is bothering me, I like to discuss it with myself until it feels right. Sometimes this discussion is civil and rational, sometimes heated and emotional. Sometimes the conversation lasts a few days or weeks, sometimes it’s over in an hour. But after my internal dialogue on the matter is over, I usually feel empowered by my decision-making.

STAMP DUTY ADMINISTRATION FOR FINANCIAL INSTITUTIONS IN NIGERIA: WHAT YOU NEED TO KNOW

Stamp duty is a levy on written and electronic documents or instruments. Stamp duties are levied on instruments on either Ad-valorem or flat rate basis and the body in charge of the administration of stamp duties is either the federal Inland Revenue Service (FIRS) (duties on instruments for transactions between corporate bodies and individuals, group, or body of individuals) or the State Internal Revenue Service (duties on instruments for transactions between individuals).

TAX DEDUCTIBILITY OF BAD AND DOUBTFUL DEBT: WHAT YOU NEED TO KNOW

An organization in the business of making profit and trade continuity will issue invoices, render a service, and carry out a particular function which is expected to have a direct impact on the inflow of the business. While carrying out the day-to-day operation of the business and in some unexpected situations, the proceeds from the services rendered or goods sold are either never paid or remain unpaid over a long period.