The Lagos State Internal Revenue Service (LIRS) has extended the time for filing 2018 employer tax returns by seven (7) days. The initial due date of 31 January 2019 is no more applicable. The new deadline is now Friday, 8 February 2019. This extension of time became necessary due to a large number of outstanding tax…
On Friday, Nigeria’s President, Muhammadu Buhari, signed an Executive Order 007, 2019 called Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme. The new order will allow companies in the private sector to repair, develop and maintain major roads across the country. In return, participating companies will get a tax credit which can be used to…
In financial accounting, net profit arises when revenue is greater than the cost otherwise it is a loss. The equation is different when it comes to assessable profit. Assessable profit is the profits from all sources in the year immediately before the year of assessment except in abnormal cases. Abnormal cases are when the basis…
Capital allowance is an allowance granted for income tax purposes instead of depreciation. It reduces the taxable profits and tax liability of a business. However, a taxpayer in Nigeria must fulfill four (4) conditions so as to claim capital allowance in a year of assessment. One of these conditions is that a taxpayer must get…
The Lagos State Internal Revenue Service (LIRS) has changed the tax filing narratives. According to the Personal Income Tax Act (PITA) Cap P8 LFN 2011 (as amended), every employer shall file an employer tax returns (Form H1) with the relevant tax authority by 31 January. In Lagos, a complete Form H1 comprise a printed copy…
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 file an annual tax return. In this piece, BRC addresses nine (9)…
Each country has its own tax laws. Nigeria, for instance, adopts the residency principle while some countries apply the source principle in deciding whether a taxpayer will pay tax in that jurisdiction. Hence, if a business is tax resident in Nigeria and generates income or profit in the United States, this could lead to double…
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 policy, fall in share price, insolvency, bankruptcy, and dormancy are common examples….
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 be taxable. Likewise, an expatriate may still attract tax and/or social security…
The World Bank (WB) released the much-awaited Ease of Doing Business 2019 Report on 31 October 2018. Each year, WB releases the Ease of Doing Business report which compares business regulation for local firms in 190 economies. Nigeria’s ranking fell from 145 to 146 even though the country improved its rank in 5 parameters. Paying taxes and…