The Federal Inland Revenue Service (FIRS) has issued a Public Notice on stamp duties in the Stamp Duties Act as amended by the Finance Act 2019 (SDA). Stamp Duty is a charge either a fixed rate or ad valorem rate, depending on the type of instrument. Types of flat rate instruments are; Appointment of…
May 2020 had the highest number of tax events compared to other months in the year. While the economy was opening after the post-COVID 19, the government was releasing several tax updates. The tax news came from tax authorities, Finance Minister, and President. Last month was the busiest in the Nigerian tax space for 2020….
Once upon a time, new companies in Nigeria paid taxes twice on the same profits. This unique tax provision, known as the commencement rule, applied to only new businesses in the first three years of operation. The three years of assessment will have two overlapping basis periods as below. 1st year – Date of commencement…
Introduction Physical presence in traditional service delivery is easy to monitor. Under this system, a tax authority can determine whether a non-resident person is taxable in a country based on factors such as fixed base, turnkey project, and dependent agent. Fairly straight-forward. All went well until the digital era jumped into the spotlight. If there…
Nigerian tax system took a giant stride in 2020. Effective 13 January 2020, the Finance Act 2019 introduced significant changes to seven tax laws. It is the first move since Nigeria became a democratic state in 1999. Taxpayers also looked up to the tax authority for guidance on the administration of the new laws. Consequently,…
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 Value Added Tax (VAT) is payable on services, tangible and intangible goods. When a person…
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 article will address six frequently asked questions (FAQs) on minimum tax for companies in Nigeria….
The Federal Government of Nigeria (FGN) has published the Finance Act, 2019, in the Official Gazette. FGN amended the provisions of seven tax laws in a single Act. While President Muhammadu Buhari signed the Finance Act into law on 13 January 2020, the Minister of Finance earlier announced that the Act would be effective 1…
Paying taxes is one of the four parameters that need major reform in the Ease of Doing Business in Nigeria. A taxpayer in Nigeria needs 347.4 hours to complete the tax compliance cycle which makes the country ranks as 159th out of 190 economies. Research also shows that a higher amount of government control in…