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Capital Gain Tax (CGT) in Nigeria The Finance Act of 2020, operational since January 1st, 2021, revised the Capital Gains Tax Act, compelling individuals who dispose of chargeable assets to calculate Capital Gains Tax, submit self-assessment returns, and settle the calculated tax. Thus, this notice is directed to all taxpayers (including companies, partnerships, executors, trustees,
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Withholding Tax (WHT) in Nigeria Withholding Tax (WHT) doesn’t constitute a separate tax entity but functions as a prepayment of income tax for specific transactions. In essence, when such transactions occur, the payer is legally obligated to deduct WHT at a specified rate, determined by the nature of the transaction and the parties involved. The
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Value Added Tax (VAT) in Nigeria Value-added tax (VAT) in Nigeria is set at a standard rate of 7.5%, which was increased from 5% on February 1, 2020. Certain items are zero-rated under VAT regulations, such as goods and services bought by diplomats and those acquired for use in humanitarian donor-funded projects. Exempt from VAT
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Personal Income Tax (PIT) in Nigeria Personal Income Tax (PIT) is a levy imposed on individuals’ income based on predetermined rates set forth by relevant legislation, such as the PIT Act 2011 (as amended) in Nigeria. Essentially, PIT represents a portion of an individual’s earnings, encompassing salary, business profits, property income, or investment returns, which
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Corporate Income Tax in Nigeria The regulation governing Corporate Income Tax (CIT) is stipulated in the Companies Income Tax Act (CITA), under Cap C21, LFN 2004, with subsequent amendments. CIT is a levy imposed on a company’s profits garnered from all sources. The prescribed tax rate stands at 30% of the total profits of a
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