Capital allowance is a provision in the Companies Income Tax Act (CITA) which allows companies to deduct their expenditure incurred on capital items before arriving at their taxable profit. Such capital items include: buildings, plants, office equipment, furniture and fittings, and motor vehicles. Capital allowances are granted on costs incurred for the procurement of qualifying…
The Nigerian Startup Act, 2022 provides copious tax incentives for startups under the Act. However, for the purpose of seeking these incentives, and indeed for the general application of the Act, the term “startup” is often misconstrued. A startup is sometimes, confused with a business among the small and medium-scale enterprises (SME), or a…
The Petroleum Industry Act (PIA), 2021, as a statutory law, creates: powers, functions, rights, obligations, offences and penalties. But, it is the regulations issued pursuant to the Act by the industry regulators that set the modalities which activate those creations of the Act. PIA made significant provisions on the right of stakeholders to be heard…
Decommissioning and abandonment is the process of shutting down operations in an oil field, whereby installations, structures, chemicals, and operation materials are removed; and environmental restoration of the area is carried out. It comes at the end of the field life, but is planned for at the very beginning of petroleum operations. In fact,…
This is sequel to our Echoes on INPUT-OUTPUT VAT MECHANISM (PT. 1). As explained in Part 1 of the Echoes on the Input-Output VAT Mechanism, Input VAT incurred by businesses in their operations are recouped from the output VAT they charge customers during sales. It is what remains of the Output VAT after deduction…