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. A blue-chip company listed on the Nigerian Stock Exchange (NSE) may recognise…
Jay launched his fantastic business last year. He used his personal savings to pay for office space and a laptop which he needed to start operations. Well, he did a couple of activities right to build his new business except for one thing, his accounting. He kept track of all expenses by putting the receipts…
In our daily lives, we usually come across people who sell goods and services to buyers at a price. The volume of sales could be on a small, medium, or even on a large scale. If you purchase an item from a retail store, you will notice a certain amount called Value Added Tax (VAT)…
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 pay the corresponding taxes within 12 months. As a form of tax…
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. It is a revised version of first TP regulation. The Income Tax (Transfer Pricing) Regulations (TP Regulations), 2018 replaces…
Multinational companies often send employees to another country for business purposes. It could be a formal or an informal assignment. An example of an employee on formal assignment is an expatriate. An expatriate is a person residing in another (host) country for work reasons. The duration ranges from short-term, medium-term, and long-term. A company in Nigeria must…
The Federal High Court, Lagos (“FHC”) has revoked the decision of the Tax Appeal Tribunal (“TAT”) in Gazprom Oil and Gas Nigeria Limited (Gazprom) v. Federal Inland Revenue Service (FIRS) relating to services which Gazprom received from a non-resident company. Initially, the TAT held that a non-resident company that is not carrying on business in…
The World Bank (WB) brought a soothing relief to the Nigerian economy with its Ease of Doing Business 2018 Report. Each year, WB releases this report which compares business regulation for local firms in 190 economies. Nigeria’s ranking soared from 169 to 145 thus representing the country’s highest annual progress (14.2 percent) over a decade….
Taxpayer identification number (TIN) is essential for opening a corporate bank account in Nigeria. A tax resident who supplies goods or services is expected to apply for TIN with the Federal Inland Revenue Service (FIRS). Thereafter, a taxpayer uses TIN for tax payment and filing of returns due to FIRS. Recently, FIRS identified 6,772 businesses having an…
Personal Income Tax is the charge on the income of individuals, trustees, and executors. In Nigeria, the key legislation is the Nigeria Tax Act 2025. The effective date of the Nigeria Tax Act is 1 January 2026. This article provides a guide on the taxation of employees (PAYE tax) in Nigeria. Employees pay tax based…