The Financial Reporting Council of Nigeria, FRCN, revokes its Rule 4 that requires a company to get an approval or register specific transactions with the relevant statutory body in Nigeria before an entity can report such transaction in audited accounts. Rule 4, which emerged in 2016, restricted businesses from recognizing specific expenses in their financial…
Our previous article discussed the theory of capital allowance in Nigeria. Now, we shall consider four (4) examples on how to calculate capital allowance in Nigeria. Question 1: In January 2022, Company Bee bought plant and machinery for NGN 5,000,000. The financial year of Company Bee ends on 31 December. Calculate the capital allowance….
On 24 June 2019, the Court of Appeal (CoA), supported the ruling of the Federal High Court (FHC), in Vodacom Business Nigeria Limited (Vodacom) and Federal Inland Revenue Service (FIRS) on the issue of value-added tax (VAT) on imported services rendered by a non-resident company outside Nigeria. A non-resident company (NRC) is a company incorporated…
As a fiscal measure to encourage investment in the capital market, the Federal Government of Nigeria issued the VAT (Exemption of Commissions on Stock Exchange Transactions) Order, 2014 (Exemption Order) on 25 July 2014. The Exemption Order amended the First Schedule of the Value Added Tax (VAT) Act 2004. All commissions on capital market transactions…
Welcome to BRC’s monthly series on Tax Highlights in Nigeria. The month of June 2019 was filled with tax cases. Here are four (4) major events that shaped the Nigeria tax space in June 2019. Tax Appeal Tribunal affirms exemption of voluntary pension contribution. More details here. Tax Appeal Tribunal rules that gratuities are tax exempt….
One of the objectives of the African Continental Free Trade Area (AfCFTA) is to increase Africa’s trade in the international marketplace. Through a mutual agreement among member countries, Africa can create sound policies for trade negotiations with other continents. AfCFTA took effect on 30 May 2019. The Federal Government of Nigeria (FGN) signed the agreement…
The Court of Appeal has overruled the decision of the Federal High Court (“FHC”) in Stanbic IBTC Holdings Plc (“Stanbic”) vs Financial Reporting Council of Nigeria (FRCN) & Anor (2015), which declared that failure to get approval from NOTAP for the registration of a contract made the contract illegitimate and invalid. Hence, Stanbic could not…
June is one of the busiest tax filing seasons in Nigeria. It is the deadline for filing companies income tax (CIT) returns for taxpayers with financial year-end of 31 December. For companies with connected persons, it also the deadline for filing the Transfer Pricing (TP) returns. Specifically, the due date for filing the CIT and…
On 20 June 2019, the Tax Appeal Tribunal presiding in Abia State ruled in Nigerian Breweries Plc. vs Abia State Board of Internal Revenue & Ors that gratuities are tax-exempt under the Personal Income Tax (PIT) Act. The contentious issue was whether the exemption was full or partial. How it all started A few years…
The Tax Appeal Tribunal (“TAT”), on 18 June 2019, delivered a ruling on the exemption of voluntary pension contribution (VC) of employees from PAYE tax in Nexen Petroleum Nigeria Limited(“Appellant”) and Lagos State Internal Revenue Service (“Respondent”). Two major issues were; Whether VC is exempt from Personal Income Tax (PIT)? Who should recover taxes on Voluntary Pension…