obitaxanswer

The following companies below are mandated to deduct VAT at source in Nigeria. . 1.Ministries Departments and Agencies(MDAs) 2.Oil and gas companies. 3.Oil servicing companies

Income tax expenses=current year tax +prior year tax +deferred tax. Income tax expenses includes the current year tax ,prior year tax(i.e previous year tax that was carried forward) and deferred tax.

The following  transaction is exempted from WHT in Nigeria- Sale in the ordinary course of business. Inter-bank interest. All income exempted from income tax. Redistributed dividends by holding company. Interest on Bonds. claims in insurance business. Disclaimer : Obi Azubuike is not by this publication acting as a professional advisers and therefore not liable to any  damage whatsoever for your acting or refraining to act based on  this publication. Consult your professional for advice.

According to VAT ACT 1993 as amended. Good and services exempted from Vat in Nigeria. 1.All medical and pharmaceutical products. 2.Basic food items. 3.Books and educational materials. 4.Newspaper and magazines. 5.Baby products. 6.commercial vehicles and commercial vehicle spare parts. 7.Fertilizer, agricultural and veterinary medicine, farming machinery and farming transportation equipment. 8.All exports. Services Exempted. 1.medical services. 2.Services rendered by community banks, people's banks and mortgage institutions. 3.Plays and performances conducted by educational institutions as part of learning. 4.All exported services.  ZERO RATED goods and services. 1.Non-oil exports . 2.Goods and services purchased by diplomats 3.Goods purchased for in humanitarian donor funded project.   -Recently transactions in the Nigeria stock exchange market were exempted from VAT Disclaimer : Obi Azubuike is not by this publication acting as ...

According to company income Tax Act-LFN-2004. When FIRS raise an assessment or raise  additional assessment and the tax payer is not satisfy, he has to object. Condition for Valid objection. a)It must be  in writing. b)It must contain the ground of objection. c)It must be made within 30 days of the receipt of the  notice of assessment. When FIRS  objects, it will raise a notice of refusal to amend. The tax payer is free to appeal within the stipulated time.  HIERARCHY OF  TAX APPEAL. 1.TAX APPEAL TRIBUNAL. 2.HIGH COURT. 3.COURT OF APPEAL. 4.SUPREME COURT OF NIGERIA Disclaimer: Obi Azubuike is not by this publication acting as a professional advisers and therefore not liable to any  damage whatsoever for your acting or refraining to act based on  this publication. Consult your professional for advice. Copyright(c)2015-Obi Azubuike

WHAT IS  VAT?   VAT is a tax on value added on goods and services. The value added on a product is  the output value minus the input cost. Value added tax has been successful in many countries. It has been challenging especially in the area of international online business. Recently some countries has asked online vendors to register for VAT in the country of buyer. Below are some VAT penalties in Nigeria. FAILURE TO REGISTER FOR VAT  According to VAT Act 1993 as amended 1.A taxable person shall, within six months of the commencement of the Act, or six months of the commencement of business, whichever is earlier register with Firs 2.A taxable person who fails or refuses to register within the specified period shall be liable to N10,000  for the  first month and N5,000 for each of  the subsequent month in which the failure occur. FAILURE TO REMIT TAX.  1 . Failure to remit tax  within the specified periods...

What is transfer Pricing? It is the pricing of  goods and services for related parties or connected persons.   Examples of related parties transactions includes the following:  1.Transactions between a company and its Subsidiary or related company. 2.Transactions between a director and his/her company. 3.Transactions between  a person with substantial amount of shareholding and his/her company. 4.Transactions between a company and a person related to the principal  officer of that company.    For example C.E.O's wife and the company. 5. Transactions between companies where  the director of one of the companies has a substantial interest in    another. 6 . Transactions between blood relations and relatives. 7. Transactions between employer and the employee. It is necessary that  businesses establish a transfer Pricing policy and good transfer pricing  documentation that reflects market value.  ...