obitaxanswer

COMMENCEMENT RULE. This rule below applies when the business is new. YR1=DATE OF COMMENCEMENT TO 31 DECEMBER OF THE SAME YR YR2=12MONTH FRM DATE OF COMMENCEMENT. YR3=PYB=WHERE NOT POSSIBLE REPEAT 2 ND  YEAR FIGURE=WHERE LESS THAN A YEAR AND MORE THAN A YEAR. The result is compared with Actual year basis. The lower tax result is elected. The finance act 2020 has  changed the rule  of taxation based on the actual profit for the year TCONCEPT PROFESSIONAL SERVICES is a firm that specialized in tax consulting and accounting. For more information see  www.tconceptpro.com  or call +234 (0)8067922530. Disclaimer : Obi Azubuike is not by this publication(or post) acting as a professional advisers and therefore not liable for any damage whatsoever for your acting or refraining to act based on  this publication(post). Consult your professional for advice.  Copyright(c)2018-Obi Azubuike

CHANGE OF ACCOUNTING DATE Business has right to change their accounting date. When this happens  assessment is based on the old or the new accounting date for the first three years from the date of change. The result that gives the higher tax is elected by the tax authority. ILLUSTRATION ABC & CO YEAR ENDED         =31/09/2012                                   =31/09/2013                                  =31/12/2013                                   =31/12/2014        ...

DURING CEASATION OF BUSINESS THIS RULE APPLIES PENULTIMATE YEAR.( YEAR BEFORE CEASATION)=PYB ULTIMATE YEAR=FROM 1 ST  JANUARY-CEASTION DATE TAX AUTHORITY CAN ELECT  THE RIGHT TO APPLY ACTUAL YEAR BASIS(AYB) ON THE PENULTIMATE YEAR. TCONCEPT PROFESSIONAL SERVICES is a firm that specialized in tax consulting and accounting. For more information see  www.tconceptpro.com  or call +234 (0)8067922530. Disclaimer : Obi Azubuike is not by this publication(or post) acting as a professional advisers and therefore not liable for any damage whatsoever for your acting or refraining to act based on  this publication(post). Consult your professional for advice.  Copyright(c)2018-Obi Azubuike

CAPITAL ALLOWANCE is allowance given by tax authority for 'fixed asset' used in the business . is used in replacement of depreciation. The rate is stipulated by law. Capital allowance is restricted to 2/3 of  assessable profit for any year of assessment except for agricultural and manufacturing business. TCONCEPT PROFESSIONAL SERVICES is a firm that specialized in tax consulting and accounting. For more information see  www.tconceptpro.com  or call +234 (0)8067922530. Disclaimer : Obi Azubuike is not by this publication(or post) acting as a professional advisers and therefore not liable for any damage whatsoever for your acting or refraining to act based on  this publication(post). Consult your professional for advice.  Copyright(c)2018-Obi Azubuike

STUDENT SHOULD KNOW THE FOLLOWING ·        CONTRACT OF SERVICE AND CONTRACT FOR SERVICES   ·        -COMPUTATION OF PERSONAL INCOME TAX   ·         -RELIEFS AND ALLOWANCES FOR PITA     CONTRACT OF SERVICE IS EMPLOYMENT AND ARE PAID SALARY. The manner specified in the employment letter.(AYB)-ACTUAL YEAR BASIS This is subject to employment laws   CONTRACT FOR SERVICES Contract for services is self-employment .fee, commission etc.(PYB)-PRECEEDING YEAR BASIS It is based on the terms of contract and can be terminated at will.     ·          RELIEFS AND ALLOWANCES AND TAX EXEMPT DEDUCTIONS 1. CONSOLIDATED ALLOWANCES= 20%+200,000NGN or 1% OF GROSS EMOLUMENT WHICH EVER IS HIGHER. 2. PENSION FROM PENSION REFORMS ACT2014 =8% FOR EMPLOYEE AND 10 PERCENT FOR EMPLOYER. = 15 OR MORE STAFF 3. NHI...

NIGERIAN TAX SYSTEM. Tax is a compulsory payment to the government. PURPOSE OF TAX.. -Is a means of generation of revenue to fund expenditure. -Is used as an  instrument to control the economy and influence business and Consumer behavior. FORM OF TAXATION. -PROGRESSIVE-Tax increases as income increases and vice-Versa. -REGRESSIVE-Tax decreases as Income increases and vice versa. -PROPORTIONAL TAX-tax remains constant irrespective of income. -AD-VALEREUM -based on value. TYPES OF TAXES.  DIRECT TAXES -Company income tax -CIT. -Petroleum profit tax-PPT. -Capital Gain Taxes-CGT. -Personal Income Tax(PIT) -Education tax-ED. -Information Technology Tax. INDIRECT TAX. -VAT SOURCES OF TAX LAWS. -STATUTE LAW -Act of parliament. -CASE LAWS (judicial precedence) -Customary laws. -Circular by minister of Finance. -Practices, Circulars and recommendations by tax authorities. -Recommendations  by tax professional body. CANNON OF TAXATION. -EQUITY. -E...

FEDERAL TAXES . ·           COMPANY INCOME TAX –CIT ·          PETROLEUM PROFIT TAX- ·          WHT- for companies, resident of FCT and non-resident individuals ·          EDUCATION TAX. ·          INFORMATION TECHNOLOGY   TAX. ·          CAPITAL GAIN TAX-for companies,resident of FCT and non-resident individuals ·          STAMP DUTIES - for companies,resident of FCT and non-resident individuals ·          VALUE ADDED TAX- ·          PERSONAL INCOME TAX –for resident of   FCT ,Armed foces, police force,Ministry of external affair and non-resident individuals.           TCONCEPT...

CLICK HERE: PERSONAL INCOME TAX CALCULATOR (NIGERIA)  TAX PLANNING AND INVESTMENT STRATEGY-EBOOK INVESTORS GOLD MINE-EBOOK LEARN BUSINESS ACCOUNTING THE LANGUAGE OF BUSINESS-EBOOK 6 PILLARS OF BUSINESS SUCESS-EBOOK