What is transfer pricing? We can split the term “transfer pricing” into two parts; “transfer” and “pricing”. Transfer means to move an item from one place to another. Pricing is the total money estimated or agreed in exchange for an item. Hence, transfer pricing is the amount which a company requires in payment for goods,…
Federal Inland Revenue Service (FIRS) has revised the Transfer Pricing Regulations in Nigeria. First, the new scope of Transfer Pricing Regulations (TPR) includes related or associated transactions based on the provisions of Capital Gains Tax (CGT) Act and Value Added Tax (VAT) Act. This means FIRS may scrutinise related party transactions for likely VAT and…
New and existing businesses in Nigeria are saddled with two or more statutory requirements. This article focuses on taxation of profits of new companies. In Nigeria, this concept is called commencement rule based on Section 29(3) of the Companies Income Tax Act 2007, LFN (as amended). This provision applies to companies in the first…
Recently, the Nigerian Senate passed a bill to revoke and reenact the Companies and Allied Matters Act. An individual intending to form a company can explore beyond the sole-proprietorship option. The proposed Act would reduce the “2 or more persons” requirement for the business formation of a company to 1 person. It further seeks to…
The Nigerian Investment Promotion Commission (NIPC) has launched an online portal (iGuide Nigeria) for investors seeking to conduct business in Nigeria. The iGuide Nigeria emerged as a collaboration between NIPC, the United Nations Economic Commission for Africa (UNECA) and United Nations Conference on Trade and Development (UNCTAD). Henceforth, Nigerian investors can make informed decisions on…
The Federal Executive Council (FEC) approved two executive orders and five amendment bills on 6 June 2018. Value Added Tax Act (Modification) Order and Review of Goods Liable to Excise Duties and Applicable Rate Order are the two executive orders. Also, the five amendment bills cover the Companies Income Tax Act (Amendment) Bill, Personal Income…