Charge of Tax. Natural resources, oil and gas in particular, comprise the country’s single largest revenue-earner but The company income tax Act in the law that regulates the taxation of all limited liability company doing business in Nigeria (private and pubic limited companies alike), other than those engaged petroleum operations, the Federal Board of Inland Revenue is the sole authority for the administration of this tax. Education Tax Act (ETA) CAP E4 LFN 2004: This law imposes tax on the assessable profit of all registered companies throughout Nigeria in order to raise funds for the educational sector. 42 3. 4. Personal Income tax Act (PITA) 1990, Company Income Tax Act (CITA) 1990, Capital Income Tax Act 1967, Petroleum Profit Tax Act (PPTA) 1995, Capital Transfer Tax Decree 1979 and the Tax Clearance Certificate of 1978. determining whether the profits of a non-resident company from any trade or business shall . Value Added Tax Act (VATA) CAP V1 LFN 2004: This is a multi stage tax levied on the value of some selected goods and services that are consumed within the country. By admin ... September 4th, 2020 | Uncategorized | Comments Off on COMPANIES INCOME TAX ACT. The Finance Act 2019, which was signed into law on 13 January 2020, contains various tax changes with effect from 13 January 2020. Some of these countries include the UK, France, The Netherlands, Belgium, Canada and Pakistan. be deemed to be derived from or accrue in Nigeria. In the country the tax charging is governed by the CITA or the Companies Income Tax Act 1990 which amended in 2004. Federal Republic of Nigeria Companies Income Tax Act 19. to tax income generated from the activities of these users. Partnership. The administration of the tax was vested in the then Comparing the existing and new provision, there may be conflicting due date of filing in many cases. Companies … A 383 | I PERSO N AL IN CO M E TA X (AM ENDM ENT) ACT, 2011 * Act No. income of Real Estate Investment Company (REIC). Short title and application. Short Title and Commencement. The income is subject to tax whether it is received by a Nigeria company or a non-resident company. FA1 2020 amended, amongst others, TP-relevant provisions of extant tax legislation, such as the Companies Income Tax Act. However, the provisions of the Companies Income Tax Act 2004 as amended (CITA) and Finance Act 2019 have alternative ways of determining the corporate tax payable. meaning of section 105 of the Companies Income Tax Act, that is to say, a company whose activities are managed and controlled outside Nigeria during the whole of that year of assessment, [Cap. The company income tax is currently charged in three thresholds in accordance with the company’s turnover as follows: COMPANIES INCOME TAX Tax is levied on a resident company’s world wide income being its profits accruing in, derived from, brought into or received in Nigeria. Chargeable profits It is one of the most important provisions of the Companies Income Tax Act. Such authorities are the Joint Tax Board, which is the apex unifying body for all tax authorities in Nigeria. Payment of income tax. Company income tax is one of the most important sources of revenue collection for the Government of Nigeria. 104 of 1993. 2004 PART I- ADMINISTRATION Section 1. Contents 1 Implementation of the Value Added Tax (VAT) provisions of the Finance Act, 2019 2 Tax implications of the operation of Regulated Securities Lending Transaction (SEC Lending) in Nigeria 3 Sundry provisions of the Finance Act 2019 as it relates to Companies Income Tax Act (CITA) 4 Provisions of the Stamp Duties Act 5 Commencement and Cessation Rules, and … (2) This Act shall, except where other provision is made in that behalf in this Act, apply in respect of tax charged for the year of assessment commencing on 1 April 1977 and each succeeding year of assessment. Value Added Tax Act, 2007 (As amended) 5. The Companies Income Tax Act (in this Act referred to as "the principal Act") is amended as set out in this Act. I A5 An Act to Amend the Capital GainsTax Act, Cap.Cl,Companies Income Tax Act, Cap.C21, Personal Income Tax Act, Cap.P8, Customs and Excise Tariff, etc. Nigeria through the Finance Act 2019, introduced a new provision into the companies income tax Act on interest deductibility consistent with the recommendations of BEPS Action 4 Report. The Companies Income Tax Act CAP C21 LFN 2004 (as amended) provides three tests for . New CIT rates, based on turnover, have been introduced. been incurred under the Schedule to the Personal Income Tax Act, the Third Schedule to the Companies Income Tax Act or the Petroleum Profits Tax Act. (2) The tax, which shall be at the rate of two per cent, shall be charged on the assessable profit of a company registered in Nigeria (in this Act referred to as “a company”). Establishment and constitution of the Board • (1) There shall continue to be … C21.] Act Personal Income Tax Act Indirect T axes Valued Added Tax Act Customs, Excise Tariff, etc. 60 L.F.N. 12. Personal Income Tax Act (PITA) and Companies Income Tax Act (CITA), as the case may be. THE MEANING OF COMPANY FOR TAX PURPOSE A company formed and registered under the Companies and Allied Matters Act or any enactment replaced by it is what the Act recognizes as a company in Nigeria16. Assessable profit for companies income tax in Nigeria. 13. Resident companies are liable to corporate income tax (CIT) on their worldwide income while non-residents are subject to CIT on their Nigeria-source income. PART IX Collection, recovery and repayment of tax 68. PART II Imposition of tax and profits chargeable 9.Charge of tax (2)The profits on which tax may be imposed in an insurance company which is a life insurance company, whether proprietary or mutual, other than a Nigerian company which carries on business through a permanent establishment in Nigeria shall- . and by the the by the Commission. of nigeria in force on the 31st day of december, 2002 prepared under theauthoirity of the revised edition (laws of the federation of nigeria) act 2004 by the law revision committee under the chairmanship of honourable mr. justice e.a. Under section 19 of the CITA, excess dividend is exempted from further tax. It is a latent value adding mechanism to a business, and a form of based erosion tax sharing (BETS) model that depletes expected tax effect on a business and shifts it to the taxpayer for incurring qualifying expenditure in respect of certain assets. 3. The Income Tax Act 21 of 1994 intends: to fix the rates of normal tax payable by persons other than companies in respect of taxable incomes for the years of assessment ending on 28 February 1995 and 30 June 1995, and by companies in respect of taxable incomes for years of assessment ending during the period of 12 months ending on 31 March 1995. 71. the basis of the Income Tax Management Act 1 961. Fourth Schedule Warrant and authority to levy by distress under the Companies Income Tax Act Fifth Schedule Funds, bodies and institutions in Nigeria to which donations may be made under section 25 of this Act Sixth Schedule Warrant and authority to enter premises, offices, etc., under the Companies Income Tax Act 1979 CHAPTER C21 Real Estate Investment Companies approved by the Securities Exchange Commission to operate as a real estate investment scheme in Nigeria will be exempt from income tax on rental income, and dividend income earned in a financial year will be exempt from income tax provided that at least 75% of such income is distributed within 12 months. 41 Bookmark File PDF Personal Income Tax Act Pita Ammended Firs Corporate Acquisitions and Mergers in Nigeria As the single most populous nation in Africa, Nigeria recently overtook South Africa as the largest economy on the continent. The two rules are the minimum tax and excess dividend tax. 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