What is Nigerian tax law?
What is Nigerian tax law?
Tax legislation is the act or process of enacting tax laws and the body of laws that provide for the levying of taxes and tax administration. The following are the existing tax legislation in Nigeria: – Associated Gas Re-Injection Act. – Capital Gains Tax Act. – Companies Income Tax Act.
What is the minimum taxable income in Nigeria?
The Finance Act 2020 defines a low-income earner as a person who earns the National Minimum Wage or less. At the moment, the threshold in Nigeria stands NGN30,000 per month or NGN360,000 per annum.
What is the new tax rate for 2021?
2021 Federal Income Tax Brackets and Rates
| Rate | For Single Individuals | For Married Individuals Filing Joint Returns |
|---|---|---|
| 10% | Up to $9,950 | Up to $19,900 |
| 12% | $9,951 to $40,525 | $19,901 to $81,050 |
| 22% | $40,526 to $86,375 | $81,051 to $172,750 |
| 24% | $86,376 to $164,925 | $172,751 to $329,850 |
What is the income tax rate in Nigeria?
24.00
| Nigeria Taxes | Last | Unit |
|---|---|---|
| Corporate Tax Rate | 30.00 | percent |
| Personal Income Tax Rate | 24.00 | percent |
| Sales Tax Rate | 7.50 | percent |
What are the 7 principles of taxation?
Seven principles for taxation are that it should be stable, sustainable, adequate, progressive, efficient, transparent and responsive to economic, social and environmental externalities.
Who are exempted from paying tax in Nigeria?
Dividends, interest, rents, and royalties earned abroad and brought into Nigeria through government-approved channels are exempt from Nigerian tax; otherwise, the income is taxable at the CIT rate applicable based on the classification of the company (i.e. small, medium, or large) and tertiary education tax at 2%.
Is 13th month salary taxable in Nigeria?
13th-month pay is usually exempt from any taxes. However, any payments over the one-twelfth denomination of the employee’s basic salary are taxable.
What are the 3 basic principles of a sound tax system?
The principles of a sound tax system are fiscal adequacy, administrative feasibility, and theoretical justice. Fiscal adequacy means the sources of revenue must be sufficient to meet government expenditures and other public needs.
What are the 5 principles of taxation?
What are Taxation Principles?
- Broad application.
- Broad tax usage.
- Ease of compliance.
- Expenditure matching.
- Fairness in application.
- Limited exemptions.
- Low collection cost.
- Understandability.
Do NGOs pay tax in Nigeria?
According to Section 23 (1) of CITA, all NGOs are generally tax exempt, provided they do not have profits derived from any trade or business. Foreign NGOs operating in Nigeria are exempt from income tax and are eligible for exemptions from other taxes under double-taxation treaties.
What kind of tax do you have to pay in Nigeria?
Enabled by the Petroleum Profits Tax Act, Chapter 354, LFN 1990, this tax is charged at 85% of the chargeable income for companies engaged in petroleum operations as specified under the Act. This tax was enabled by the Stamp Duties Act, Chapter 411, LFN 1990. It is chargeable according to a scale fixed by the Joint Tax Board.
What kind of tax law does Lagos have?
However, this is changing in states like Lagos where the State Government is coming down hard on tax defaulters through its tax agency, the Lagos Inland Revenue Service (LIRS). There are different types of taxes and several laws govern them.
How is Section 55 of Cita amended in Nigeria?
Section 55 of the CITA was amended, making specific provisions regarding filing requirements for Nonresident Companies (NRCs) that have a taxable presence in Nigeria. Clarification has been provided regarding the tax return requirements for NRCs with taxable presence in Nigeria.
What are the laws of companies Income Tax Act?
Companies Income Tax Act SECTION 58. Board may call for further returns. 59. Extension of period of making returns. 60. Call for returns, books, documents and information. 61. Information to be delivered by bankers. 62. Return deemed to be furnished by due authority. 63. Books of account. 64. Power to enter and search premises.