The first haze in taxation of small companies in Nigeria relates to the determination of what constitutes a small company for Companies Income Tax (CIT) purposes, and some sources of mix up are responsible for this. The Finance Act, 2019 which introduced income tax exemption for small companies, defines a small company as a…
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…
Echoes on Input-Output VAT Mechanism VAT is a tax paid at the rate of 7.5% on consumption (supply) of goods or services except those exempted from the tax by the VAT Act Businesses whose VATable supplies in a year are N25 Million and above are mandated to remit to FIRS, the VAT due for…
Brief introduction of the common taxes paid by individuals and corporate bodies in Nigeria. A listing of the various taxes imposed by law on individuals and businesses in Nigeria would readily create an impression of multiple taxation or over-taxation. This, in fact, is usually topmost in the complaints of the general public about Nigerian taxation.…
Abstract This paper seeks to create an insight into the intendments of the Nigerian Value Added Tax Act on taxation of supplies by non-residents to Nigerian residents, and the ideal approaches for amelioration of the controversies. Analyses of laws and judicial decisions in the paper find that the Destination Principle and the Reverse Charge Mechanism…
Dr. Jerome Okoro* INTRODUCTION Following its earlier expression of interest to go after alleged tax defaulters with huge funds in Nigerian banks, the Federal Inland Revenue Service (FIRS) recently started issuing letters to commercial banks, appointing them as tax collection agents for such customers.[1] The letters contain directives to the banks to freeze the named…
Jerome Okoro[1] and P. C. Obutte [2] Abstract This paper examines the role of tax incentives in marginal field development in Nigeria. With a doctrinal research methodology consisting of analyses of laws, policies, principles and practices, and a slight comparative study of Nigeria with Malaysia and Angola, the research discovers that marginal field operations,…
INTRODUCTION The Finance Act, 2019 came with copious far-reaching changes in the laws relating to major taxes in Nigeria. The Act is a single legislation that amends key provisions of seven existing tax laws, namely: the Companies Income Tax Act (CITA), 2004; Personal Income Tax Act (PITA), 2007; Value Added Tax Act (VATA), 2007; Petroleum…