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A complete guide on employer tax return in Nigeria

An employer is required to deduct Pay-As-You-Earn (PAYE) tax from employees’ salary in each month. Thereafter, the employer must remit the amount to the relevant tax authority within 10 days of the next month. Besides the monthly PAYE tax return, an employer should…

excise duty on carbonated drinks

Cessation rule in Nigeria

The going concern principle states that an entity will continue operations in perpetuity. In other words, the entity will not stop operations or liquidate its assets in the short term. Still, certain factors could force a company to stop operations. Constant losses, unfavorable government…

Tax equalization for expatriates

Global mobility will be easier if employment tax rates are the same in every country. Well, it isn’t! The tax liability of an employee often changes during an international assignment. If an expatriate is tax resident in a foreign country, such income will…

Capital allowance in Nigeria

Businesses often buy items that will generate benefits above 12 months. When these items are also tangible and hard to convert into cash, they are called fixed assets. Each company is free to set a threshold for recognizing fixed assets in its books.…

Value Added Tax in Nigeria: A beginner’s guide

If you purchase goods from a departmental store in Nigeria, you will notice a certain amount, Value Added Tax, on your sales receipt. Typically, this is rarely an issue since the price is inclusive of Value Added Tax (VAT). The Finance Acts 2019,…

VOARS

Voluntary Offshore Assets Regularization Scheme (VOARS) in Nigeria

What is VOARS? VOARS means Voluntary Offshore Assets Regularization Scheme. President Muhammadu Buhari issued the Executive Order 008 called Voluntary Offshore Assets Regularization Scheme (“VOARS” or “the Scheme”) on 8 October 2018. The Scheme allows Nigerian taxpayers to declare their offshore assets and…

TP Regulations

FIRS public notice on Transfer Pricing Regulations

Here are four (4) facts on the latest public notice on Transfer Pricing (TP) regulations, 2018 issued by the Federal Inland Revenue Service on October 3, 2018. Is this the first TP regulation in Nigeria?  Answer:  No. The revised Income Tax (Transfer Pricing) Regulations…