The Nigerian Company IncomeTax Act (CITA) is a critical piece of legislation governing how companies operating in Nigeria are taxed. Compliance is not optional, and the consequences for breaching these rules can be severe. Here’s a comprehensive list of 21 offenses under CITA you must avoid, alongside their penalties and practical advice to stay compliant.     1. Failure to File Tax Returns Not filing your annual returns within six months of the end of your financial year is a common offense. The penalty for this offence is ₦ 25,000 for the first month of default and ₦ 5,000 for each subsequent month.   Quick Bite: Filing tax returns refers to the process of submitting required tax-related documents and information to a tax authority, such as the Federal Inland Revenue Service (FIRS) in Nigeria. These documents provide details about a company's income, expenses, and taxes owed or already paid for a particular financial period.   2. Late Payment of...

  Digital services have made life easier for everyone, but they’ve also created new challenges for tax systems around the world. In Nigeria, the Digital Services Tax (DST) was brought into its tax landscape by the insertion of paragraph (c) into section 13 (2) of the CompanyIncome Tax (CITA) by section 4 of the Finance Act 2019 to ensure that companies making money from Nigerians through the internet contribute their fair share to the country’s revenue. Whether you’re a local or foreign business, understanding DST is crucial. Let’s take you through it in quick session.   Check out the amazing cloud hosting services offered by Truehost  here ! 1. What is DST? DST is a tax on income made from providing digital services to Nigerians. If a company is operating online and earning from Nigerian customers without a physical office in the country, they must pay DST. For example, Netflix, which streams movies to Nigerians, and Google, which runs ads for Nigerian businesses...

  Hey there, tax enthusiasts! Let’s look at some fascinating legal twists. You might think tax laws are dull, but today, we’re giving you the inside scoop on seven sneaky sections that the FinanceAct 2019 waved goodbye to in the Nigerian Company Income Tax Act (CITA) . These aren’t just any old sections—each one had its own role, and their deletion means major changes in how businesses operate. So, let’s break down what’s gone and why you should care! 1. The Goodbye to Replacement of Obsolete Plant and Machinery (Section 41) Once upon a time, if your business was updating old equipment, Section 41 had your back. It provided a 15% investment tax credit for companies replacing outdated plant and machinery. This perk was designed to encourage companies to keep their equipment in tip-top shape, fostering productivity and efficiency. But, the Finance Act 2019 didn’t see it that way anymore! With the deletion of Section 41 by Section 17 of the Finance Act 2019, businesses no lon...

  Hello, fellow tax enthusiasts, (and maybe a few who are here just trying to get a handle on the latest tax jargon)! Today, we’re diving into the somewhat confusing yet fascinating world of Capital Gains Tax (CGT) in Nigeria. Whether you’re an entrepreneur, a real estate investor, or simply curious, this quick guide will break down the essentials of Nigeria's CGT in a way that (hopefully!) makes sense and feels less intimidating. So let’s get rolling with 15 key points that’ll give you all you need to know about CGT in Nigeria!   1. What Exactly Is Capital Gains Tax (CGT)? CGT is a tax charged on the profits (aka “capital gains”) you make when you sell or dispose of an asset that’s appreciated in value. In other words, if you bought something for a low price and sold it later for a higher one, you owe the government a slice of that sweet profit. This is different from VAT , which is applied to goods and services at each production stage, and Stamp Duty , which is p...

  Courtesy: Taxaide Hi there, finance gurus, accountants, and even the curious DIY tax filers! Ever wondered why documents sometimes need a little “stamp of approval” to be official? Enter the world of “Stamp Duties in Nigeria”—the ultimate seal of legitimacy for legal documents, from real estate deals to financial transactions. Buckle up as we take a lighthearted yet insightful look into the world of stamp duties in Nigeria.   Check out the amazing cloud hosting services offered by Truehost  here ! What Exactly Are Stamp Duties? Picture this: you’re sealing a super-important letter to a friend with a wax stamp to ensure it’s ‘official’. Stamp duties in Nigeria work much the same way. They are taxes paid on certain written or electronic documents to authenticate and make them legally binding . These taxes are governed by the Stamp DutiesAct (SDA) , and without them, many documents would be nothing more than expensive paper!   Why Should You Care About Stamp Duties? ...