Withholding tax in nigeria administration and rates. Muhammdu buhari is the current president of nigeria. Under current nigerian law, taxation is enforced by the 3 tiers of government, i. Latest current affairs in may, 2020 about income tax. Tax types in nigeria by firs federal inland revenue service home about us. Updated nigerian current affairs past questions and. Taxable income any salary, wage, fee, allowance or other gain or profit from employment including. Remember, we are all trying to achieve the same two goals. Department of accounting and finance faculty of management sciences, lagos state university, lagos, nigeria eaddress. We are confident that the revised policy will eventually give a new lease of life to, and inspire farreaching reform of, the nigeria tax system in terms of structure, number of taxes, and administration within the context of our peculiar environment. If a thought about calculating and paying your personal income tax scares you, do not worry. Effects of tax policy on the expenditure of local government councils in imo state dr. Personal income tax pit can be described as the income tax payable for any year of assessment upon the chargeable income of. Taxation current affairs today current affairs 20172018.
Here is over updated current affairs about nigeria. As a general rule, income on a property rent, hire or lease payments or rights royalties situated in nigeria is liable to tax in nigeria, the place of payment not withstanding. Tax types in nigeria by firs federal inland revenue. It is in line with this, that the national tax policy is set out below. The immediate and long term implications for businesses operating in nigeria. We have also published, for the first time, an article by an academic. For 2015 and 2016, results are available at the subnational level. National tax policy that would provide a direction for nigerias tax system and establish a framework that all stakeholders would subscribe to and to which they would be held accountable. All you need to know a withholding tax is a system of taxation. Section 81 of company income tax act, section 54 of petroleum profit tax act, section 73 of personal income tax act.
In the longterm, the nigeria corporate tax rate is projected to trend around 30. Latest current affairs in april, 2020 about taxation. Practitioners need to have current knowledge of a complex web of country tax laws, regulations, rulings, methods and requirements. Federal, state, and local government with each having its sphere clearly spelt out in the taxes and levies approved list for collection decree, 1998.
Nigeria aint broke, it just needs to fix its tax system kenny oleru. Taxation in nigeria and history of taxation in nigeria a tax in nigeria is a compulsory levy imposed by the federal government of nigeria on individuals and corporate entities in respective of return of service expected from the government. Select to go to an ebook version of the publication more information here. Get latest current affairs in nigeria for job interviews and history tests on project topics. D, hcib department of accountingfinance, faculty of management and social sciences, godfrey okoye university, enugu. We have gathered all the vital information about it so that you understand all the intricacies of the law. Challenges and prospects, a case study of lagos state board of internal revenue service, largest undergraduate projects repository, research works and materials. The understanding of the nigerian current affairs will aside equipping you with the knowledge of passing those aptitude test and interview questions better position you to appreciate our past, with the view of predicting the nigerian future. The challenges of tax collection in developing economies.
Regina navuga, the programme officer at seatiniuganda. This translates to less than 9% of all companies operating in nigeria. Guess how many nigerians pay tax and how our government. Papers and publications by office of tax analysis staff. For 2014 results and prior, the data can only be viewed and explored in aggregate country or regional form. Taxation in nigeria is administered by the three major tiers of government. Its an easier way for the government to get more people to pay their tax. Nigerian tax rates vary according to the amount of income you earn, and you pay different rates on different portions of your income. Notes on income tax laws tax year 2012 muhammad ovais, deloitte th mfc 3 company. United nations, department of economic and social affairs, population. Select the publication number to go to the publication in tax map when available. It is recognized in law under the capital gains tax act.
Capital gains tax cgt is a tax on the profit obtained from disposal or exchange of certain kinds of assets. Cbdt issues clarification over section 115 bac of income tax act. On the 8th of june 2016, former nigeria coach stephen keshi sadly passed away of cardiac arrest in the early hours of wednesday at. Treasury inspector general for tax administration interim results of the 2016 filing season march 31, 2016 reference number. Personal income tax in one of the types of taxes in nigeria that is levied by the federal government of nigeria what is personal income tax in nigeria. Pdf nigeria is governed by a federal system, hence its fiscal operations also. The need for tax administrators to continuously adhere to the canons of taxation. In cases where you have issues relating to tax, there are departments that you can contact to lay your complaint. This publication includes the 2016 percentage method tables and wage bracket tables for income tax withholding. Where a person rents or hires propertyservices from another, withholding tax at the rate of 10% will. Consequently, its application is provided for in the enabling law of other tax types i. This edition of the nigerian tax journal summarizes the decided tax cases and administrative pronouncements by rtas and tax administrators in 2018. The companies opting for the new tax rates need not pay minimum alternate taxes mat.
The central board of direct taxes recently clarified that the employers shall seek clarification and detect tax. Operating unitlevel results for 2016 and prior years represent aggregated totals. Effects of marriage penalty relief tax policy on marriage taxes and marginal tax rates of cohabiting. Section 1431a of income tax is amended to expand the scope of adjustment which can be made while processing income tax return filed for the asst year 201718 and thereafter. Various person may be subject to withholding tax deduction to balance their tax liabilities for different types of tax. The challenges of tax collection in developing economies with special reference to india pramod k.
Invest in nigeria recent reforms foster recovery, unlocking. Some of these taxes are paid to the federal government through the federal inland revenue service firs while some are paid to the state governments. There are different types of taxes and several laws govern them. The guardian nigeria newspaper brings you the latest headlines, opinions, political news, business reports and international news. Help indiana taxpayers successfully and correctly complete their annual tax returns. Income tax department is empowered to make following adjustments before processing income tax return. Government faulted on tax policy and its not doing well. A tax in nigeria is a compulsory levy imposed by the federal government of nigeria on individuals and corporate entities in respective of return of service expected from the government. In 2016, federal inland revenue service firs through a public notice. Wht deductions are regarded as advance payments or payments on account of the relevant tax liability that will arise from the tax returns of the period concerned.
Tax administration and tax revenue generation in nigeria. This includes rental income on both real and personal property. National tax policy that would provide a direction for nigeria s tax system and establish a framework that all stakeholders would subscribe to and to which they would be held accountable. However, personal income tax is the most important of them. That is, the ability of the government to collect the levied taxes is very crucial to the success or failure of such government as the available revenue through the tax collection would determine the type of developmental programs the government would embark upon bird, 2015. Nigerian public holidays good friday 25 march 2016 easter sunday 27 march 2016 easter monday 28 march 2016. Highlighted below are some of the issues still faced by the nigerian taxation system and possible way forward.
Of importance at this juncture however are tax regulations pertaining to investors both foreign and local. Looking ahead, 2017 is almost certain to be a pivotal year for taxes and tax planning. During 2016, the irs issued regulations on a number of farreach ing subjects, including corporate taxation, international taxation, individual taxation, health care, and more. Employees simply pay their income tax through the pay as you earn paye system, whereby employers deduct the due tax at source from the salaries and transfer it directly to the firs on a monthly basis, while independent. Consequently, taxation, more than ever before, has become a. It is time to stop the practice of putting tax affairs in the back burner until we are compelled by circumstances to do so. In nigeria, nobody can dispute the fact that though this taxes are been collected, they are. Nigeriantaxjournal2019 kpmg nigeria kpmg international.
Taxes in nigeria are all collected by the national federal inland revenue service firs. This tax is only a mechanism to collect other taxes. The importance of knowing the nigerian current affairs in 2019 can never be overemphasized. Select to go to the topic screen for the publication.
The objective of the study is to evaluate the effect of the nigerian tax policy on. He is a retired military general and served as military head between 1983 and 1985. They can pay taxes at the rate of 15% provided they do not claim deductions from other laws and rules. In nigeria, capital gains tax is 10% of the profits from the sale of the qualifying assets. Taxation in nigeria plus history of taxation in nigeria. The 2016 amount for one withholding allowance on an annual basis is. New income tax law from january 2016 graphic online. Corporate tax rate in nigeria is expected to reach 30. Read all the latest news, breaking stories, top headlines, opinion, pictures and videos about tax from nigeria and the world on today. We are confident this publication will help you and your clients in preparing 2016 indiana tax returns.
Nigerian companies pay 30 percent of their worldwide profit while foreign companies pay 30 percent of only the profit made in nigeria. Overview of personal income tax in nigeria explained. The 183 days residency rule for liability to nigerian tax is to be reckoned on a 12 month basis and not merely within an assessment year. Not all nairas earned are equal as far as the taxman is concerned.
It is only a mechanism for the collection of other taxes. Tax news latest breaking stories and top headlines today. The mandate also includes recommending a workable implementation strategy. This simply means paying similar taxes on the same or almost similar tax base. The impact of tax revenue on nigerian economy case of federal board of inland revenue matthew a.
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