In financial accounting, a business can depreciate its fixed assets with a straight-line method or reducing balance method or units of production. However, the principle is different for calculating the capital allowance. All taxpayers must use the same rate. Schedule…
Federal Inland Revenue Service (FIRS) has issued an information circular to clarify the amendments to the Value Added Tax (VAT) Act 2004 in the Finance Act 2019. The circular covers nine (9) sections. 1. Revised definition of goods and services…
Usually, the gross salary on an employment contract differs from the monthly salary which an employee receives. Our earlier article on payroll and statutory contributions in Nigeria provides an analysis of the various requirements. One of the payroll obligations that…
The Federal Inland Revenue Service (FIRS) has announced extra tax concessions in response to COVID-19. Option to pay tax in Naira: Tax is payable in the currency of the transaction. For transactions in foreign currency, taxes will be paid in…
As most businesses in Nigeria are on lockdown, economic activities have reduced. Low economic activities hurt fiscal revenue and cash flow. To boost tax revenue, the Federal Inland Revenue Service (FIRS) has granted a palliative measure to taxpayers with outstanding…
Income tax is payable on taxable income or profits. However, a person with no taxable income may have a tax liability. In such a situation, the estimated charge is a minimum tax. As minimum tax affects individuals and corporations, this…
To lower the impact of COVID-19 on taxpayers, the Federal Capital Territory Internal Revenue Service (FCT-IRS) has extended the time for filing the annual individual tax returns (Form A) by 3 months. The new deadline for filing Form A is…
Nigeria has joined a host of other countries around the globe that have rolled out economic palliatives in response to the COVID-19 pandemic. Five (5) regulatory bodies have extended the time to file statutory returns while Nigerian lawmakers have proposed…
