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Filing of 2021 employer tax returns in Nigeria
It’s the season for filing payroll tax in Nigeria. The Personal Income Tax Act (PITA) Cap P8 LFN 2011 (as amended) requires every employer to file the employer tax returns (Form H1) with the relevant tax authority by 31 January. Employers are to file their annual returns for the 2021 tax year relating to employee(s) income and…
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How to perform payroll tax reconciliation
What is payroll tax reconciliation? A payroll tax reconciliation checks whether the PAYE tax calculated corresponds with the actual amount payable. A regular reconciliation lowers payroll tax exposure. An employer can carry out a reconciliation exercise quarterly, bi-annually, or annually. As payroll data provides the input for payroll tax, it is crucial to check the…
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Finance Bill 2021 reaches Senate
On 7 December 2021, President Muhammadu Buhari released the Finance Bill 2021 (FB 2021) to the National Assembly for passage. Finance Bill 2021 seeks to amend and introduce relevant tax and fiscal laws for macroeconomic policy reforms and public financial management of Nigeria. FB 2021 proposes changes to some provisions in twelve (12) laws. They…
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Nigeria VAT compliance for non-resident suppliers
Federal Internal Revenue Service (FIRS) has released guidelines on a simplified compliance regime for value added tax for non-resident suppliers (The Guidelines). The Guidelines clarify the obligations and procedures for value added tax (VAT) compliance by non-resident suppliers (NRS) supplying goods, services, or intangibles to persons in Nigeria through electronic platforms. The effective date is…
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How to register for tax – Lagos State Internal Revenue Service
A taxable person is required to register for taxes in Nigeria. Individuals, employees, partnerships, and communities pay personal income tax in Nigeria. Personal income tax is payable to the relevant tax authority. Tax residents in Lagos State usually pay tax to the Lagos State Internal Revenue Service (LIRS). The taxes and other levies payable to…
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Tertiary Healthcare Development Bill – New Tax on Companies in Nigeria
The Nigerian Senate has passed a bill to establish a Tertiary Healthcare/Hospitals Development Fund (THD Fund). The THD Fund will provide money for the rehabilitation, restoration, and consolidation of tertiary healthcare in Nigeria. The Tertiary Healthcare/Hospitals Development Fund shall provide and maintain the infrastructure necessary for tertiary healthcare delivery, carry-out health research and clinical training,…
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Analysis of Petroleum Industry Act 2021 in Nigeria
Outline Introduction Objectives Regulatory bodies Petroleum operations and licenses Host Communities Development Frontier Exploration Fund Tax No longer in use Download Gazette and Article on PIA 2021 1. INTRODUCTION The first commercial discovery of oil in Nigeria was in 1956 in Oloibiri, Niger Delta. The discovery attracted other multinational oil companies to explore the onshore…
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Presentation on Petroleum Industry Act 2021 in Nigeria
President Buhari signed the Petroleum Industry Act (PIA) 2021 into law on the 16th of August 2021. PIA contains five chapters. First chapter looks at the Governance and Institutions. Second chapter 2 covers the Administration while the third chapter 3 discusses Host Communities Development. Chapter 4 provides the fiscal framework for the petroleum industry. The…
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FIRS circular on taxation of non-residents in Nigeria
The Federal Inland Revenue Service (FIRS) has issued guidance on the taxation of non-residents in Nigeria. FIRS Information Circular No. 2021/07 of 3rd June 2021 provides information on the Nigerian tax laws for non-residents (individuals or corporate) and their liability to taxes in Nigeria. It covers residence, non-residents, withholding tax, capital gains tax, jurisdiction, filing…
