Introduction The Federal Inland Revenue Service (FIRS) has released a circular on the withholding of value added tax (VAT) in Nigeria in line with the provisions of the VAT Act 2004 (as amended). 1.0 Legal basis A taxable person who receives a taxable supply in Nigeria from a Non-Resident should withhold and remit VAT. The…
1.0 Introduction The Federal Inland Revenue Service (FIRS) has released an information circular dated September 1, 2022 for administering the National Agency for Science and Engineering Infrastructure Levy (NASENI levy). The levy relies on the National Agency for Science and Engineering Infrastructure (Establishment) Act, Cap. N3 LFN, 2004 (as amended) (NASENI Act), Federal Inland Revenue…
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…
Effective 1 January 2021, the Finance Act 2020 introduced significant changes to fifteen laws covering tax and non-tax laws in Nigeria. The revenue authority usually releases information circulars to guide stakeholders on the administration of the Finance Act. Consequently, the Federal Inland Revenue Service (FIRS) has released three information circulars to clarify the Finance Act 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….