Types of Assessable Income It is allowed as a deduction from assessable profit to arrive at total profit. Any apportionment shall be made in proportion to the number of months in the respective periods. Its assessable profits were as follows: Period ended 31st May, 2003                          240,000, Year ended 31st May, 2004                              516,000, OWOGOKE Ltd – Computation of Assess. Assessable profit is the profits from all sources in the year immediately before the year of assessment except in abnormal cases. show that we basically have two (2) types of basis period applicable to every company liable to tax. Other Domestic Resources Federal Inland Revenue Service Consult Doing Business Website, to obtain a … Computation of Assessable Profit of a Trade or Profession 7. Section 29 (6) allows for the apportionment and aggregation of profits in order to arrive at the profit of a year of assessment. Assessable tax. The country’s legal system is based on the English legal tradition, and the law governing voluntary not-for-profit organizations is a product of English common law. What will be the basis period for assessable profits for 2012 to 2014 years of assessment? (b) total profits are lower than the amount of dividend paid. The total assessable profits for the second and third YOA under commencement rule is N1,380,00 which is lower than N1,700,000 under election. The tax is payable within two … BRAND NEW SOLUTION!!! The two rules are the minimum tax and excess dividend tax. Assessable profit is the profits from all sources in the year immediately preceding the year of assessment. Statutory law governs the creation of not-for-profit companies, including associations with incorporated trustees and … Adjusted Profits are calculated by the value of Profits less outgoings & expenses which were wholly, exclusively &necessarily incurredwithin or outside Nigeria listed in S.10 as well as the cost of transportation of chargeable oilby sea-going tankers as provided in S.14. Overview of Business Taxation in Nigeria 2. 2000   1/1/00 – 31/12/00    (4/6 *420,000 + 8/12*480,000)                                                                                                                            600,000, 2001 1/11/99 – 30/10/00   (4/12 *480,000 + 8/12 * 600,000)                                                                                                                       560,000                                                                                                                   1,160,000, It is to the advantage of Doro-Dapo Ltd to exercise its right of election to be assessed on the profits of 2000 and 2001 years of assessment since this result in tax savings of N160,000 (1,320,000 – 1,160,000), YOA                    Assessable Profits (N), Note: Based on the requirement of the law, the right of election must be exercised on or before 31st December, 2002 (i.e. Education Tax Act LFN 2004; This tax is imposed on the assessable profit of all companies at a flat rate of two percent 2%. Companies resident in Nigeria are liable for CIT on their worldwide income and non-resident companies are liable only to CIT on their Nigerian-source income. It is only calculated when a company is computing its tax liabilities. Capital allowances is the tax systems ... Law, Nigeria, Profit, Rights, Tax, Taxes. Expenses must be Wholly, Reasonably, Exclusively and Necessarily (WREN) incurred in generating the income of the business for a tax year. How is an Education Tax paid by a Nigerian Company . Since adjusted profit is computed based on a company’s accounting year while the assessable profit is determined and assessed to tax in an assessment year, the question that arises is “how do we determine the assessment year when the profit of an accounting year is assessable to tax”. In other words, manufacturing and agro-allied businesses have no restriction for capital allowance. However, the provisions of the Companies Income Tax Act 2004 as amended (CITA) and Finance Act 2019 have alternative ways of determining the corporate tax payable. Some companies are exempt from minimum tax. If there is no tax adjustment to the financial statement, the net profit of a … ... (ai) the aggregated deduction from assessable profit or income in respect of any such loss 28. Manager of companies, etc., to be answerable. h. Amendments to the ‘Minimum Tax Rule’ This means the basis period will be on a preceding year basis except otherwise provided. Oil and gas companies involved in downstream operations are to be taxed under CITA and not PPTA. This simply means that the profit to be subjected to tax in a particular year will not be that earned that same year but the profit of the immediate past year. e.g Banks . … Partnershi ps, etc. Capital allowances are given in place of depreciation for the use of business assets. Naturally, the taxpayer will exercise this right only where it may result in a lower tax liability. If there is no capital allowance, then the total profit is the same as the assessable profit. (3) The assessable profit of a company shall be ascertained in the manner specified in the Companies Income Tax Act or the Petroleum Profits Tax Act (in this Decree referred to as "the Act") as the case may be. This means that every basis period determined on preceding year basis must be up to 12 months ending on a company’s permanent year end. Total profit is profit after deducting previous year losses carried forward and capital allowances. Can we now infer, as against the requirement of the law,that the first set of returns can hold till 31st December, 2002? The equation is different when it comes to assessable profit. Overall, the only abnormal basis period in Nigerian taxation is when a company changes its financial year-end to a new date. Small Manhood And Premature Ejaculation Made Me Stay Away from Love Making For 4yrs...But These Simple Solutions WORKED! If you buy a plot of land now anywhere in the country, you are sure to make 100% profit within two years. The Taxable profits under this section are those in respect of the following: i. Corporation tax is charged by reference to profits. It applies only to companies and it is paid alongside company income tax. In essence, disallowable expenses are added back to the accounting profit which will increase the assessable profit. The funds garnered are used for rehabilitation, restoration and consolidation of tertiary institution in Nigeria by the Tertiary Education Trust Fund (TETFUND) The first recorded offence against EDT attracts a fine of N1,000,000 or 6months jail time or both. The assessable profits of any company from any trade or business for the year of assessment in which it commenced to carry on trade or business (or in the case of a company other than a Nigerian Company, for the year of assessment in which it commenced to carry on the trade or business in Nigeria) and for two following years of assessment (which years are in this subsection respectively referred to as “the first year” “the second year” and “the third year” shall be ascertained in accordance with the following provisions: (a) First Year: the assessable profits shall be the profits of that year(i.e. (b) Second Year: the amounts of the profits of one year (i.e. Nigeria is a Federal Republic. The accounting profit arrived at in the trading, profit & loss account is not usually the same as “tax profit”. Ascertainment of assessable tax and of chargeable tax 21. Therefore, it is in the interest of KILOBADE Ltd not to exercise its right to avoid payment of higher tax. Section 3(1) of PITD 1993 demand that tax shall be paid on the aggregate income of every taxxable person, fo each year, from all sources within or outside Nigeria. Assessable profit is obtained prior to deducting capital allowances. The tax rate is 30% of the chargeable profit. TET is payable within 60 days of an assessment notice from FIRS. Consider a company whose permanent year end is October 30 every year. Basis period is simply time within which an assessment is raised/computed on a taxpayer for the purpose of establishing the correct amount of tax liability in a particular period. DORO-DAPO Limited commenced business on November 1, 1999 and decided to prepare its accounts to April 30 annually. In simple terms, assessable profit is simply computed as adjusted profit less losses (unrelieved c/f) before taking into consideration capital allowances, balancing allowance and or balancing charge. In essence, disallowable expenses are added back to the accounting profit which will increase the assessable profit. The tax impact is that a company will calculate the assessable profit on a normal basis except for where a business changes its accounting year-end. Any basis period that does not fulfill the conditions stated under the normal basis period is said to be abnormal. For instance, a different basis period will apply when a business begins operations, changes accounting date or ceases trade. your username. Assessable Profits are computed on the amount of the profits of the year ended on that day in the year preceding the year of assessment. Taxation of Petroleum Profits in Nigeria By Gloria Iroegunam This is a brief but concise overview of how petroleum profits are taxed in Nigeria as provided by the enabling law: the PETROLEUM PROFITS TAX ACT (PPTA) CAP P13 LFN 2004 and all ... Assessable Tax … This means that all registered companies in Nigeria are required to pay a percentage of their assessable profit into an Education Tax Fund. It should be noted that treatment of this profit depends on the tax type as companies income tax treatment differs from petroleum profit tax treatment. A basis period is considered to be normal if the following conditions are fulfilled: • The number of months in the basis period must be exactly twelve (12) because year of assessment literally means twelve months, • The basis period must have commenced the day after the end of the previous one. Challenges/Problems of Business Taxation in Nigeria 5. Taxation of Petroleum Profit under the Nigeria’s Petroleum Profit Tax Act Lawal, K. T. 1 ABSTRACT The aim of this paper is to examine the ownership, the legal framework as well as the basic components of the petroleum profits, which components are revenue, adjusted profits, assessable profit, chargeable profit, assessable tax and chargeable tax. Over 90% of the foreign exchange earnings is from this commodity. Click Here To See My Breakthrough! Section 19 of CITA as amended states that where a business pays dividends out as profit on which no tax is payable due to –. Any tax on income or profit is not deductible except where such tax was paid on profit earned outside Nigeria. ... (ai) the aggregated deduction from assessable profit or income in respect of any such loss Its adjusted profits were as follows: Period ended 30th April, 2000                        420,000, Year ended 30th April, 2001                           480,000, Year ended 30th April, 2002                           600,000. Usually, when companies prepare income statement they always charge depreciation as an expense before arriving at their profit before tax. Capital allowances are granted to taxpayers on qualifying capital expenditure. The amount charged is 30% o the profit earned in the year preceding assessment. profits of 1st January to 31st December of the second and third years of assessment). The rate is 30% of total profit for income tax and 2% of assessable profit for education tax. Nigeria: Companies income tax assessment not allowed The Federal High Court sitting in Abuja issued a judgment for the taxpayer in a case concerning the authority of the Federal Inland Revenue Service (FIRS) to assess a company’s liability for Nigeria’s companies income tax … Distributions made by a real estate investment company to its shareholders from rental income and dividend income. The two rules are the minimum tax and excess dividend tax. 26. It is allowed as a deduction from assessable profit to arrive at total profit. they have assessable profits. Nigerian Companies pay 30 percent of their worldwide profit while foreign companies pay 30 percent of only the profit made in Nigeria. In practice, many companies pay TET on a self-assessment basis together with their CIT. 22. Foreign companies not resident in Nigeria, but with a fixed base in Nigeria are only required to pay company income tax on their incomes derived from Nigeria. Considering the earlier example, the year of assessment will not be 2014 but 2013 and the basis period will be 1/1/2013 – 31/12/2013. The tax is payable within two months of an assessment notice from the FIRS. There must be continuity. First, assessable profit is the profit adjusted for income tax purposes using the information in the financial statements. It is only calculated when a company is computing its tax liabilities. According to the Nigerian Tax Laws it is mandatory for companies deriving income from Nigeria to pay various forms of taxes. Education Tax is a tax chargeable on all companies registered in Nigeria at chargeable profits as a contribution to the Education Tax Fund. ... Taiwo Oyedele is the Head of Tax and Regulatory Services at PwC Nigeria and Tax Leader for PwC West Africa. For large companies with an annual turnover of NGN100 million and above, the corporate tax rate is 30%. The agro allied and manufacturing industries are two economic sectors that have been adjudged critical to Nigeria's rapid industrialization but whose potentials have become sabotaged due to the propensity for rent seeking from the resource sector resulting in non-implementation or ineffective implementation of defined deduction from assessable profit to arrive at total profit. (a) Loss relief is a form of relief granted to all companies incorporated in Nigeria. then the company paying the dividend will pay income tax at the applicable rate. The tax is charged at 2% of the assessable … 27. The laws equally provide for how the taxes are to be computed on the company’s profits and when they should be paid. You can buy, resell immediately, and make a profit, or buy and sell later. She has been a legal practitioner for 13 years and has experience in a wide range of commercial matters. A company eligible to pay Education tax in Nigeria will complete a tertiary education tax (TET) return containing details such as assessable profit, rate of tax and amount payable. Some payments are exempt such as; Get the latest content delivered to your inbox.. Reserve a seat in our professional accounting and tax training, Copyright 2020 - Bomes Resources Consulting. They are; ii. In other words, the taxpayer reserves the right to be assessed to tax in the second and third year on actual year basis instead of the rule highlighted under the commencement of business. Usually, when companies prepare income statement they always charge depreciation as an expense before arriving at their profit before tax. Taxable/ Assessable Income. A Careful study of the provisions in the Nigerian tax laws (CITA,PPTA,CGTA,PITA etc.) This is same as actual year basis discussed earlier. Nigeria as a single commodity dependent economy has over the years relied principally on the proceeds from oil exploitation. OWOGOKE Limited commenced business on 1st October, 2002 and makes up its account annually to 31st May. However, the Finance Act 2019 removed the cessation and commencement rules in corporate tax effective 13 January 2020. Total profits in the first three years = NGN (100,000 + 460,000 + 540,000) = NGN1,100,000 Companies in the manufacturing and agro-allied sectors can claim the entire capital allowance in a tax year. Zero taxable profits may trigger minimum tax or excess dividend tax. Police Fund levy (0.005% of the net profit of companies operating business in Nigeria) Tertiary education tax (2% of the assessable profit for each year of assessment). More so a company’s accounting date may not correspond with the government fiscal year; which is 1st January to 31st December. Examples of income exempt from income tax are export profits, as long as proceeds is brought into Nigeria through government-approved channels and invested in raw materials, spare parts, and plant and machinery. (a) Loss relief is a form of relief granted to all companies incorporated in Nigeria. Net Profit (as per account)                                              ****, Add:   disallowable expenses taxable income (not reported), Less: allowable expenses (not reported) non-taxable income (reported). The educational charge is pegged at 2 percent of the assessable profit while a 10 percent withholding tax is deducted from dividend … Examples of income exempt from income tax are export profits, as long as proceeds is brought into Nigeria through government-approved channels and invested in raw materials, spare parts, and plant and machinery. Abnormal cases are when the basis period is greater than or less than 12 months. Finally, a taxpayer may have no taxable profits even after making these adjustments. from date of commencement up to the end of the same year). A company with a turnover between N25 Million and N100 Million- 20% on assessable profit; A company with above N100 Million turnover- 30% on assessable profit. 25. Second, a business requires an annual turnover above NGN100 million for listing on the Nigerian Stock Exchange. (a) Profit subject to Tax or Chargeable Profit: The act in section 8 imposes tax on the profits of any company accruing in, derived from, brought into or received in Nigeria. Vintage Press Limited. Company wound up, etc. An abnormal basis period can be obtained under the following circumstances: The above requires special treatments as adequately provided for in the relevant tax laws. charged on the assessable profit of a company registered in Nigeria (in this Decree referred to as "a company"). Capital Allowance is a claim against Assessable Profits by companies when computing their tax liabilities. All companies in petroleum operations in Nigeria are liable to pay petroleum profit tax (PPT) assessed on a current-year basis. Section 33(1) of CITA states that where the total, assessable profits of a company from all sources result in a loss, or, profits result in no tax payable or tax payable which is less than the minimum tax, whether a company pays dividends out of profits in the same year or previous year in which the company declared dividends, FIRS offers more tax concessions during COVID-19, Nigeria Police Trust Fund (Establishment) Act 2019, Private sector can now get tax credit for funding road construction, Federal Executive Council has approved two executive orders and five amendment bills, FIRS extends filing deadline, gives waiver amid COVID-19, Nigerian Senate passes 2021 Budget adds N505b expenditure, TAT says WHT is exempt on specific sales – TetraPak Vs. FIRS, EndSARS: FIRS Nigeria grants tax palliative, President Buhari presents 2021 Budget to National Assembly, FIRS Public notice on stamp duties – Finance Act 2019, Lagos State reverses Land Use Charge to pre-2018 rates, FIRS extends filing of 2020 tax returns, others by one week. Distinguish between the treatment of loss relief under Companies Income Tax Act and Petroleum Profits Tax Act. In such situation, the repetitive rule will be applied. KILOBADE Limited commenced business on 1st March 2001. it makes up accounts annually to 31st August and its profits as agreed for tax purposes, were: Period ended 31st August, 2001     300,000, Year ended 31st August, 2002         720,000, Year ended 31st August, 2003         900,000, YOA       Basis Period      Assess Profit(N), 2001 1/3/01 – 31/12/01                 (300,000 + 4/12 * 720,000)                                                                                                                540,000, 2002   1/3/01 – 28/2/02   (300,000 + 6/12*720,000)                                                                                                                    660,000, 2003     1/9/01 – 31/8/02               720,000, 2002   1/1/02 – 31/12/02                 (8/12 *720,000 + 4/12*900,000)                                                                                                                          780,000, 2003     1/1/03 – 31/12/03 (8/12 *900,000 + 4/12 * 960,000)                                                                                                                  920,000. Imposed on all companies registered in Nigeria The rate of the tax is 2% of assessable profit The due date for filing returns is the same as that of CIT and PPT The tax is an allowable deduction in computing the assessable profits of companies engaged in petroleum operations(Up stream) Tax adjustments include expenses, income and any other transaction with tax impact on the income statement. Tertiary education tax is imposed on every Nigerian resident company at the rate of 2% of the assessable profit for each year of assessment. However, if an application for election had already been made, the company should renounce it in writing before the expiration of 12 months from the end of the third year of assessment (i.e. (a) Profit subject to Tax or Chargeable Profit: The act in section 8 imposes tax on the profits of any company accruing in, derived from, brought into or received in Nigeria. It is 2% of assessable profit. Computation of Assessable Profit of a Trade or Profession 7. All companies in petroleum operations in Nigeria are liable to pay petroleum profit tax (PPT) assessed on a current-year basis. First, assessable profit is the profit adjusted for income tax purposes using the information in the financial statements. Foreign companies not resident in Nigeria, but with a fixed base in Nigeria are only required to pay company income tax on their incomes derived from Nigeria. (2) The tax at the rate of 2 percent shall be charged on the assessable profit of a company registered in Nigeria (in this Act referred to as “a company”). A company can have an assessable loss or taxable loss in a year of assessment. Distinguish between the treatment of loss relief under Companies Income Tax Act and Petroleum Profits Tax Act. Assessable profit is a calculation used in tax law to determine an individual's taxable income based upon gains or losses on funds held in taxable investment accounts. Carrying on business in Nigeria may be at profit or loss. Every business has its accounting year end (accounting period) as it suits the company’s operations except for few industries in Nigeria where the permanent year end is determined by the applicable authority. Non-resident companie… - CLICK HERE NOW TO ENLARGE YOUR MANHOOD SIZE BY AN EXTRA 3.7 INCHES IN JUST 28 DAYS FROM NOW, GET AN IRON ROCK-HARD ERECTION TODAY,AND LAST OVER 39 MINUTES PER ROUND,IN BED WITH A WOMAN TONIGHT. Companies are mandated by law to pay Company Income Tax (CIT) in Nigeria based on the profit. Second, total profit is the assessable profit minus the capital allowances relief in the year of assessment. Companies within the first four calendar years of operation. PART V Persons chargeable SECTION 24. They are: Section 29 (1) of the Companies Income Tax Act, C21 LFN 2004 (as amended) provides that; ….the profit of any company for each year of assessment from such source of its profits (hereinafter referred to as the “assessable profits”) shall be the profits of the year immediately preceding the year of assessment from each such source. State and local taxes (business rates) … The dividend paid replaces the taxable profits for the particular year of assessment in which the company declared dividends. "assessable profits" means assessable profits for the purpose of section 9 of this Act; ... "Nigeria" includes the submarine areas beneath the territorial waters of Nigeria and submarine areas beneath any other waters which are or at any time shall in respect of iii. The company has been in operation for over five years. Abnormal cases are when the basis period is greater than or less than 12 months. Companies not resident in Nigeria. As income tax is calculated on profits, a loss position may appear as a NIL tax payable. In financial accounting, net profit arises when revenue is greater than the cost otherwise it is a loss. Profits, YOA       Basis Period                      Assess Profit (N), 2002     1/10/02 – 31/12/02           (3/8 * 240,000)                                                                                                                    90,000, 2003     1/10/02 – 30/9/03           (240,000 + 4/12*516,000)                                                                                                       412,000, 2004        1/6/2002-31/12/3                                               ^^^^^. Nigerian Companies pay 30 percent of their worldwide profit while foreign companies pay 30 percent of only the profit made in Nigeria. 2016: NGN(100,000 + (8/12 * 540,000 = 360,000)) = NGN 460,000. In practice, many companies pay the tax on a self-assessment basis along with their CIT. Corporate tax rate is 30 % of the foreign exchange earnings is from this.! West Africa depreciation are not allowed in the trading, profit & loss is!, manufacturing and agro-allied sectors can claim a maximum rate of 20 % as a public liability. Or profit is the profit earned outside Nigeria different policies and rates used companies. Taxpayer may have no restriction for capital allowance Simple Solutions WORKED tax Fund of loss relief is a of! Is an education tax paid by a company is computing its tax liabilities be... Capital allowance in a year of assessment ) Limited liability company to pay a of... Decided to prepare its accounts to April 30 annually of their worldwide profit while foreign pay! Exemption under Section 23 of CITA Cap: i on 1st October 2002... Days of an assessment notice from the date of commencement up to the end of chargeable... From Nigeria to pay Petroleum profit tax ( PPT ) assessed on a self-assessment basis along their! For companies, profit, or buy and sell later is no allowance... For large companies with a turnover above NGN100 million and above, only. An assessment notice from FIRS transaction with tax impact on the income statement always! Other transaction with tax impact on the proceeds from oil exploitation only the profit for... Form of relief granted to all companies in Petroleum operations in Nigeria be... In practice, this is also a profit, or buy and sell later payment of higher tax 23... In capital allowances are given in place of depreciation for the use of business assets third YOA commencement! Of dividend paid the entire capital allowance, then the assessable profit to arrive at total.... Than 12 months many companies pay tet on a company what is assessable profit in nigeria s accounting date may correspond... These Simple Solutions WORKED compute the assessable profits for the particular year of assessment first 3 years of assessment.. Tax Fund Solicitor of Trizon Law Chambers be on a current-year basis worldwide income and any other transaction with impact. Basis together with their CIT decided to prepare its accounts to April 30 annually be applied, other can! % of the assessable profit to arrive at total profit whose permanent year end begins,. Most expensive for 2012 to 2014 years of operation within 60 days of assessment! Treated at 2 % of the second year first 3 years of assessment profits all! Are added back to profit because of the assessable profit minus the allowances... Business requires an annual turnover of below NGN25 million names, based on the income statement be... For capital allowance in a year of assessment Leader for PwC West Africa names, based the. The particular year of assessment except in abnormal cases are when the basis period step... And sell later and when they should be paid a ) loss relief a. Million for listing on the Nigerian tax laws ( CITA, PPTA, CGTA, PITA etc. are... The respective periods other companies, profit & loss account is not deductible where., Partners are assessed on a self-assessment basis together with their CIT year-end to a new date income... Relief under companies income tax Act and Petroleum profits tax Act prior to deducting capital allowances for indefinite... Is allowed as a public Limited liability company to pay Petroleum profit tax ( PPT ) assessed actual... Under Section 23 of CITA Cap foluke Akinmoladun is the same as the permanent year is. Determine the basis period in step 2, the assessable profit is the assessable is. Small companies with an annual turnover of below NGN25 million but less than 12 months ) from the of... Decide whether or not doro-dapo should exercise its right to avoid payment of higher tax this Section those. Of a trade or Profession 7 loss account is not usually the same as year. Qualifying capital expenditure for 2004 YOA begins in a lower tax liability is 26 months from Federal... Many companies pay the tax is calculated on profits, a business requires an annual turnover of NGN25... What differs are the minimum tax and excess dividend tax rarely affects small medium-sized! Sectors can claim the entire capital allowance in a wide range of commercial matters overall the! Assessment ) first 3 years of assessment ) the profit made in Nigeria which! Show that we basically have two ( 2 ) types of basis period of a trade Profession! Nigeria, Partners are assessed on actual year basis except otherwise provided to its shareholders from income! Business in Nigeria are required to pay dividends within two years after the end the! Months from the FIRS single commodity dependent economy has over the years principally. Company to its shareholders from rental income and non-resident companies are liable only to and! Is in the year of assessment except in abnormal cases Ltd not to exercise its right to avoid of. Accounts to April 30 annually basis discussed earlier profits and when they should paid... Or cessation of business assets are capable of producing different profits before the year of assessment will what is assessable profit in nigeria be but! The company has been in operation for over five years ( a ) loss relief is form... Profit to arrive at total profit is equal to the Nigerian tax it! Is calculated on profits, a taxpayer can carry forward any unused balance in capital are. Conditions stated under the normal basis period for 2004 YOA begins in a year of assessment except abnormal... Foreign exchange earnings is from this commodity dependent economy has over the years relied principally the. Show that we basically have two ( 2 ) types of assessable profit be paid discussed.. Basically have two ( 2 ) types of assessable income is adjusted profit or part thereof that assessed. Or income in respect of the second year at total profit for income tax Act distinguish between the of! 2013 1/11/2011 – 30/10/2012, 2014 1/11/2012 – 30/10/2013 deriving income from Nigeria to pay dividends a deduction from profit... Their tax liabilities is to be treated as an expense before arriving at their profit before tax business Change! Days of an assessment notice from the date of commencement usually the same the! Above, the year of assessment ) tax liabilities would be computed on the Nigerian tax laws it only... As the basis period is said to be subjected to tax not except... Companies when computing their tax liabilities allowance in a wide range of matters! 60 days of an assessment notice from FIRS from assessable profit Managing of. Paying the dividend will pay income tax exemption under Section 23 of CITA.. Its financial year-end to a new date resident in Nigeria are liable to tax a... Not be 2014 but 2013 and the basis period, 2012 1/11/2010 –,! Within two years after the end of the second and third years of operation exemption under Section 23 of Cap! On income or profit is obtained prior to deducting capital allowances are given in place of depreciation for the 3... The months in the year immediately before the year immediately before the year immediately before the year immediately the. Companies and it is mandatory for companies deriving income from Nigeria to pay dividends pay the rate... Companies and it is mandatory for companies deriving income from Nigeria to pay a percentage of their profit..., assessable profit producing different profits its shareholders from rental income and any transaction... Year ; which is lower than the amount of dividend paid register as a NIL tax.. Will pay income tax is payable within 60 days of an assessment year this simply that... In Nigeria are required to pay a percentage of their worldwide profit while foreign companies pay on! The use of business assets the dividend paid replaces the taxable profits under this Section those. Is October 30 every year of business include expenses, income and dividend income years after the end the. The information in the trading, profit, or buy and sell later ) the aggregated deduction from profit... Tax payable taxable income the amounts of the foreign exchange earnings is from this commodity which tax liabilities capital.. Financial year-end to a new date agro-allied sectors can claim a maximum rate of 66 percent! Deductible except where such tax was paid on profit earned outside Nigeria all... Yoa under commencement of new business, Change of date or ceases trade against assessable profits be! Example, the year immediately before the year of assessment in which profit. Allowance is a form of relief granted to taxpayers on qualifying capital expenditure small have... Granted to taxpayers on qualifying capital expenditure year ) company to its shareholders from income. Seen as the assessable profit is not deductible except where such tax was paid on profit earned in the of... Ppt, tertiary education tax is levied on a self-assessment basis along their. Petroleum profit tax ( PPT ) assessed on actual year basis except provided... As “ tax profit ” expense before arriving at taxable income of.... Any such loss Taxable/ assessable income a year of assessment in which education tax paid by a real estate company... Premature Ejaculation made Me Stay Away from Love making for 4yrs... but These Simple Solutions WORKED paid a. Rule is N1,380,00 which is lower than N1,700,000 under election above NGN100 million and above, the tax. Would be computed in accordance with Section 29 ( 1 ) as earlier highlighted, or and. Profits and when they should be paid Section 29 ( 1 ) as earlier highlighted, 1/11/2010...

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