The new circular on withholding tax issued by the Nigerian Minister of Finance outlines the rules for deducting tax from payments to taxable persons under various tax acts. Key highlights include reduced tax rates for eligible transactions and residents of treaty countries, a new tax rate for directors’ fees, and
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
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 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
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
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
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
Filing annual returns ensures that a business complies with the requirement of the tax laws. It also ensures that a company gets Tax Clearance Certificate (TCC) which is a requirement for government contract bidding in Nigeria. Failure to file annual returns with the FIRS attracts penalties that can become
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
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