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Navigating the New Expatriate Employment Levy in Nigeria: Implications and Concerns
Navigating the New Expatriate Employment Levy in Nigeria: Implications and Concerns

Navigating the New Expatriate Employment Levy in Nigeria: Implications and Concerns

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Introduction The Federal Government of Nigeria, under the leadership of President Bola Tinubu, has recently introduced the Expatriate Employment Levy (EEL) through the Nigerian Immigration Service. Launched on February 27, 2024, and effective as of March 15, 2024, the EEL imposes a mandatory levy on companies engaging expatriate workers in Nigeria. This levy amounts to […]

A Review of TAT’s Ruling on the Applicability of Withholding Tax on management Fees Paid to a Non-resident Company
A Review of TAT’s Ruling on the Applicability of Withholding Tax on management Fees Paid to a Non-resident Company

A Review of TAT’s Ruling on the Applicability of Withholding Tax on management Fees Paid to a Non-resident Company

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On 6 December 2021, the Tax Appeal Tribunal (TAT) sitting in Lagos delivered a judgment on the applicability of Withholding Tax on management fees paid to a non-resident company. The judgment suggests that wording an item as reimbursement in a contract may not be adequate to exempt it from WHT and that the FIRS can […]

Previously Exempted Investment Income may now be Liable to Tax Effective from 2 January 2022
Previously Exempted Investment Income may now be Liable to Tax Effective from 2 January 2022

Previously Exempted Investment Income may now be Liable to Tax Effective from 2 January 2022

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Recall that on 2 January 2012, the federal government issued the Companies Income Tax (Exemption of Bonds and Short-Term Government Securities) Order, 2011. The Order granted corporate income tax waiver on all bonds and debt instruments issued by all tiers of government and corporate entities effective from 2 January 2012 for a period of 10 […]

TAT Rules on the Applicability of Withholding Tax on commissions Deducted Upfront by Betting Agents
TAT Rules on the Applicability of Withholding Tax on commissions Deducted Upfront by Betting Agents

TAT Rules on the Applicability of Withholding Tax on commissions Deducted Upfront by Betting Agents

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FinSV Gaming Limited (SVG) is a sports betting business that uses a network of agents including Retail Agents throughout Nigeria to reach its customers. The customers place bets and pay the stakes to the Retail Agents. If the customer wins, the Retail Agent pays the earnings to the customers. Occasionally, the Retail Agent will deduct […]

20 Key Changes to the 2021 Finance Act (Effective 1 January 2022)
20 Key Changes to the 2021 Finance Act (Effective 1 January 2022)

20 Key Changes to the 2021 Finance Act (Effective 1 January 2022)

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The Bill for the amendment of the Nigerian Finance Act 2021 was transmitted to the National Assembly on the 7th of December 2021 by President Muhammadu Buhari. The Bill was subsequently passed into law two weeks after and its application is effective from 1 January 2022. Among other objectives, the bill seeks to support the […]

FIRS Issues Tax Return Guidelines for Free Zone Enterprises in Nigeria
FIRS Issues Tax Return Guidelines for Free Zone Enterprises in Nigeria

FIRS Issues Tax Return Guidelines for Free Zone Enterprises in Nigeria

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­Background The Federal Inland Revenue Service (FIRS) recently issued a circular setting out guidelines for filing tax returns and other compliance obligations relating to approved enterprises within Nigeria’s export processing and free trade zones. These guidelines were issued pursuant to the recent Finance Act (FA) 2020 amendments to the Nigeria Export Processing Zone Act (NEPZA) […]

CBN Released Regulatory Framework & Guidelines on Mobile Money Services (MMS) in Nigeria
CBN Released Regulatory Framework & Guidelines on Mobile Money Services (MMS) in Nigeria

CBN Released Regulatory Framework & Guidelines on Mobile Money Services (MMS) in Nigeria

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The Central Bank of Nigeria (CBN) has released the Regulatory Framework & Guidelines on Mobile Money Services in Nigeria. The Framework incorporates an updated version of the previous Guidelines on Mobile Money Services in Nigeria. One of the reasons for  the Framework is to set the minimum technical and business requirements for the various participants […]

FIRS Issued Circular on Sundry Changes Including Tax Exemption for SMEs
FIRS Issued Circular on Sundry Changes Including Tax Exemption for SMEs

FIRS Issued Circular on Sundry Changes Including Tax Exemption for SMEs

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The Federal Inland Revenue Service (FIRS) issued a circular to clarify some of the changes to the Companies Income Tax Act (CITA) introduced by the Finance Act (FA) 2020. This circular is an update of an earlier circular issued in May 2020 on sundry changes to CITA introduced by the FA 2019 (“2019 circular”). Key […]

An Evaluation of the TAT’s Ruling in Multichoice Nigeria Limited vs the FIRS
An Evaluation of the TAT’s Ruling in Multichoice Nigeria Limited vs the FIRS

An Evaluation of the TAT’s Ruling in Multichoice Nigeria Limited vs the FIRS

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The Federal Inland Revenue Service (FIRS) alleged that MultiChoice Nigeria (MCN or the Company) had under-remitted about N1.8 trillion in taxes, and directed banks with which the Company had accounts, to freeze such accounts, recover the alleged under-remitted sum and pay over to the FIRS. MCN disputed the assessment and filed an appeal at the […]

The Federal High Court’s Judgement on VAT Administration in Nigeria and Matters Arising
The Federal High Court’s Judgement on VAT Administration in Nigeria and Matters Arising

The Federal High Court’s Judgement on VAT Administration in Nigeria and Matters Arising

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VAT was introduced in Nigeria via Decree No.102 of 1993. It replaced sales tax operated under Decree No.7 of 1986, administered by states and the FCT. By contrast, VAT is administered by the FIRS, and the revenue is shared among all three levels of government. Both VAT and sales tax fall under the category of […]

An Analysis of Practice Directions on Tax Disputes Determination Issued by the Federal High Court
An Analysis of Practice Directions on Tax Disputes Determination Issued by the Federal High Court

An Analysis of Practice Directions on Tax Disputes Determination Issued by the Federal High Court

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Recently, the Chief Judge (CJ) of the Federal High Court (FHC) issued the Federal High Court (Federal Inland Revenue Service) Practice Directions, 2021 (the Directions) in respect of tax matters and applications filed by the Federal Inland Revenue Service (FIRS).  The Directions, amongst other objectives, seek to facilitate the speedy dispensation of justice relating to tax matters. The Directions […]

The Petroleum Industry Bill (PIB) – 20 Changes Stakeholders Should Know
The Petroleum Industry Bill (PIB) – 20 Changes Stakeholders Should Know

The Petroleum Industry Bill (PIB) – 20 Changes Stakeholders Should Know

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Background The Petroleum Industry Bill (PIB) seeks to provide legal, governance, regulatory and fiscal framework for the Nigerian Petroleum Industry and development of Host Communities. It contains 5 Chapters, 319 Sections and 8 Schedules.   Key Changes in the Bill Chapter 1 – Governance and Institutions The key objective is to ensure good governance and […]

A Review of Central Bank of Nigeria’s Guidelines on Shared Services Arrangements
A Review of Central Bank of Nigeria’s Guidelines on Shared Services Arrangements

A Review of Central Bank of Nigeria’s Guidelines on Shared Services Arrangements

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The increased presence of Multinational Enterprises (MNEs) across various jurisdictions has, among other things, created the need to centralise certain functions within the MNE Group. Many MNEs have adopted a shared services arrangement to centrally provide certain business support services to members of the group. Such shared services arrangements typically include services such as accounting, […]

TAT Upholds Statute of Limitation, Rules That Tax Authority Cannot Carry out Repetitive Tax Audits Without Credible Basis
TAT Upholds Statute of Limitation, Rules That Tax Authority Cannot Carry out Repetitive Tax Audits Without Credible Basis

TAT Upholds Statute of Limitation, Rules That Tax Authority Cannot Carry out Repetitive Tax Audits Without Credible Basis

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Background On 28 May 2021, the Tax Appeal Tribunal (TAT) South-South Zone, sitting in Benin, delivered a judgment in a matter between Ecobank Nig. Ltd (“the Bank”) v Delta State Board of Internal Revenue (“the Revenue”). The matter bordered on the legality or otherwise of the Revenue carrying out tax audit or investigation on taxpayers […]

Transfer Pricing Compliance in Nigeria and Common Pitfalls for Businesses to Avoid
Transfer Pricing Compliance in Nigeria and Common Pitfalls for Businesses to Avoid

Transfer Pricing Compliance in Nigeria and Common Pitfalls for Businesses to Avoid

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Background Transfer Pricing (TP) in Nigeria is governed by the Income Tax (Transfer Pricing) Regulations, 2018 (TPR). The TPR provides that Related Party Transactions (RPTs) should be conducted in line with the arm’s length principle and provides compliance obligations for taxpayers. The annual compliance obligations include the filing of TP returns and the preparation of […]

Beware of Key Compliance Obligations Under CAMA 2020 and Companies Regulations 2021
Beware of Key Compliance Obligations Under CAMA 2020 and Companies Regulations 2021

Beware of Key Compliance Obligations Under CAMA 2020 and Companies Regulations 2021

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Background The Companies and Allied Matters Act 2020 (CAMA 2020 or the Act) was signed into law and gazetted with a commencement date of 7 August 2020. The Act, which repeals the 1990 Company Act, introduces wide-range of changes to Nigeria’s business environment. It is important that business owners and management are well aware of […]

Companies Operating in Nigeria May be Liable to 0.25% Turnover Tax Under the NASENI Act.
Companies Operating in Nigeria May be Liable to 0.25% Turnover Tax Under the NASENI Act.

Companies Operating in Nigeria May be Liable to 0.25% Turnover Tax Under the NASENI Act.

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On 24 January 2021, President Muhammadu Buhari ordered the Federal Inland Revenue Service (FIRS) to collect the statutory levy applicable under the National Agency for Science and Engineering Infrastructure (NASENI) Act. The Federal Government of Nigeria established the Agency (NASENI) in 1992 with the primary mandate to create an enabling, knowledge-driven environment for local mass-production […]

FIRS to Deploy Automated Tax Administration Solutions – The Service Issued Public Notice
FIRS to Deploy Automated Tax Administration Solutions – The Service Issued Public Notice

FIRS to Deploy Automated Tax Administration Solutions – The Service Issued Public Notice

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Background It is important to recall that the Finance Act (FA) 2020 introduced an amendment to the Federal Inland Revenue Service Establishment Act (FIRSEA), empowering the Service to deploy proprietary technology to automate the tax administration process in Nigeria. The FIRS however, must give 30 days’ notice to taxpayers before it can deploy such technology. […]

COVID-19 and the imperative for SMEs operational resilience
COVID-19 and the imperative for SMEs operational resilience

COVID-19 and the imperative for SMEs operational resilience

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Download the PDF for COVID-19 and the imperative for SMEs operational resilience. “It is not the strongest of the species that survives, nor the most intelligent, but rather the one most adaptable to change” -Charles Darwin The material (dated 13th July 2020) was prepared  by the Managing Partner of Nexia Agbo Abel & Co., Abel […]

VAT on Casino Revenue, Imported Services and Foreign Third-party Recharges: TAT Issues Controversial Ruling
VAT on Casino Revenue, Imported Services and Foreign Third-party Recharges: TAT Issues Controversial Ruling

VAT on Casino Revenue, Imported Services and Foreign Third-party Recharges: TAT Issues Controversial Ruling

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Background Tourist Company of Nigeria Plc (TCN or the Appellant) engages in the gaming and hospitality business including the operation of a casino, in Nigeria. The FIRS assessed TCN to ₦88m in unpaid VAT (inclusive of penalties and interests) for the 2016 year of assessment (YOA). TCN objected to this assessment and proceeded to the […]

Tax Appeal Tribunal upholds deemed profits assessment but fails to determine whether FIRS validly exercised its discretion
Tax Appeal Tribunal upholds deemed profits assessment but fails to determine whether FIRS validly exercised its discretion

Tax Appeal Tribunal upholds deemed profits assessment but fails to determine whether FIRS validly exercised its discretion

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Background Section 30(1)(b) of the Companies Income Tax Act (CITA) grants FIRS the discretion to assess foreign companies to tax on a reasonable percentage of their turnover where it appears to FIRS that the company either has no assessable profits or has assessable profits that are less than expected, or the profits of such companies […]

Sales in the Ordinary Course of Business not Subject to WHT – TAT Delivers landmark Judgement
Sales in the Ordinary Course of Business not Subject to WHT – TAT Delivers landmark Judgement

Sales in the Ordinary Course of Business not Subject to WHT – TAT Delivers landmark Judgement

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Background On 30 November 2020, the Tax Appeal Tribunal (TAT or the Tribunal) sitting in Lagos decided in the case of Tetra Pak West Africa Limited (Tetra Pak or the Appellant) and Federal Inland Revenue Service (FIRS or the Respondent) that sales in the ordinary course of a company’s business are exempt from Withholding Tax […]

Taking Control of Controls – Lessons from the Sarbanes Oxley Act for Nigerian Companies
Taking Control of Controls – Lessons from the Sarbanes Oxley Act for Nigerian Companies

Taking Control of Controls – Lessons from the Sarbanes Oxley Act for Nigerian Companies

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Background In the wake of a series of gross corporate abuses around the turn of the 21st century, the United States Congress passed Sarbanes-Oxley Act, which intended to make corporate governance more rigorous, financial reporting more transparent, and management criminally liable for lapses. The first year of implementation was costly and burdensome, far more than […]

FIRS grants further palliatives in response to recent business disruptions
FIRS grants further palliatives in response to recent business disruptions

FIRS grants further palliatives in response to recent business disruptions

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Overview Following the disruption to businesses occasioned by the recent EndSARS protest across Nigeria, the Federal Inland Revenue Service (FIRS) on Wednesday, 4 November 2020 issued a public notice (the Notice) granting additional palliatives to businesses in Nigeria.   Additional Palliatives Granted by the Service The additional palliatives granted by the Service relate to waiver […]

TAT Rules that Rental Income from Property Leases are VAT Exempt
TAT Rules that Rental Income from Property Leases are VAT Exempt

TAT Rules that Rental Income from Property Leases are VAT Exempt

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Overview On Thursday, 10 September 2020, the Tax Appeal Tribunal (TAT), Lagos Division delivered a judgment in a matter between Ess-ay Holdings Limited (the Appellant) and the Federal Inland Revenue Service (FIRS or the Respondent). The matter bordered on the applicability of Value Added Tax (VAT) on rental income and whether the lease of a […]

CAMA 2020 and the Introduction of Limited Liability Partnership
CAMA 2020 and the Introduction of Limited Liability Partnership

CAMA 2020 and the Introduction of Limited Liability Partnership

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Prior to the enactment of Companies and Allied Matters Act (CAMA) 2020, the old legislation made provisions only for general partnerships. This type of partnership permits individuals to enter into partnership agreements which can be registered under part B of CAMA as a business name. Professionals have long used this vehicle to float their businesses […]

Key Considerations for Improving Electronic Tax Administration in Nigeria
Key Considerations for Improving Electronic Tax Administration in Nigeria

Key Considerations for Improving Electronic Tax Administration in Nigeria

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Over the past decade, there has been a strong global move towards digitalisation. Most sectors are gravitating towards improving and transforming their business operations. Business functions and processes are leveraging technology solutions to expand the use and context of digitized data. In most economies, tax authorities have also tapped into the benefits of digitalisation and […]

Nexia Agbo Abel & Co. donates to NCDC to support fight against COVID-19
Nexia Agbo Abel & Co. donates to NCDC to support fight against COVID-19

Nexia Agbo Abel & Co. donates to NCDC to support fight against COVID-19

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The world currently navigates uncharted waters. The COVID-19 pandemic is changing the way we do business and interact, but at Nexia Agbo Abel & Co., it has not changed its values. In commemoration of its annual Nexia Day which has become an avenue to carry out its Corporate Social Responsibility, the firm decided to make [...]
COVID-19: FIRS announces waivers
COVID-19: FIRS announces waivers

COVID-19: FIRS announces waivers

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The Federal Inland Revenue Service (FIRS) earlier issued a Public Notice on 30 April 2020 announcing its decision to waive interest and penalties on outstanding tax liabilities arising from desk reviews, tax audits and investigations. In order to be eligible for the relief, the Service stated that the affected taxpayers must settle their outstanding tax […]

COVID-19 Update
COVID-19 Update

COVID-19 Update

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In light of the outbreak of COVID-19 in Nigeria, we wish to inform our clients and the general public of the temporary closure of all our offices nationwide, effective Tuesday 24th March, 2020 till further notice. Kindly note that our services are still available and will be provided remotely. Please, feel free to contact us […]

TAT Delivers its First Judgement on Transfer Pricing Regulations in Nigeria
TAT Delivers its First Judgement on Transfer Pricing Regulations in Nigeria

TAT Delivers its First Judgement on Transfer Pricing Regulations in Nigeria

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The Tax Appeal Tribunal (TAT) sitting in Lagos on Wednesday, 19 February 2020, delivered judgment in a matter between Prime Plastichem Nigeria Limited (PPNL) v. Federal Inland Revenue Service (FIRS). This judgement came as the first to be delivered on Transfer Pricing Regulations in Nigeria. The case bordered on the compliance or otherwise of the […]

Nexia International, among top 10 largest global accounting networks
Nexia International, among top 10 largest global accounting networks

Nexia International, among top 10 largest global accounting networks

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Nexia International (Nexia), according to the latest International Accounting Bulletin (IAB) World Survey, has retained its strong position as the ninth largest global network, as measured by fee income. Nexia Agbo Abel & Co. is a proud member of the Nexia International network. In 2019, Nexia’s total fee income was USD4.3bn across the network — […]

Making Counts Count
Making Counts Count

Making Counts Count

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It is that time of the year; when we want to establish how much inventory we would have as at the year-end. From raw materials, work-in-progress, parts and supplies and finished goods, counts would be done. It is however possible for stock count exercises to become routine and not bring the requisite benefits to inventory […]

Know and Exercise Your Tax Right to Fair Hearing
Know and Exercise Your Tax Right to Fair Hearing

Know and Exercise Your Tax Right to Fair Hearing

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The Nigerian tax laws provide a taxpayer (individual or corporate) the right to fair hearing as enshrined in the constitution. The Federal Inland Revenue Service (FIRS) however has previously been confronted for allegedly undermining this provision and finalising an assessment without allowing tax payers this right. Perhaps, some taxpayers have been made to pay excesstax [...]