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…
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…
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…
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…
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…
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,…
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…
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.…
