obitaxanswer

According to  Company Income Tax Act 16(1 )Notwithstanding anything to the contrary contained  in this Act, insurance business shall be taxed as a.An insurance company ,whether proprietary or mutual ,other than a life insurance company. b.A Nigerian company whose profit  accrued in part outside Nigeria,  the taxable profit=Gross premium interest and other income receivable in Nigeria less reinsurance and deducting from the balance so arrived at, a reserve fund for unexpired risks at the percentage consistently adopted by the company in relation to its operation as whole for such risks at the end of the period for which the profit are being ascertained, subject to the limitation imposed in subsection(8)(a) -The implication of the above is that Life  insurance business is seen as a separate business from other non-life insurance  business from tax perspective. For more information call us +2348067922530 Disclaimer : Obi Azubuik...

The primary objectives of NGOS is not profit making. The following are the obligations of NGOS in Nigeria -Register and obtain taxpayer identification Number. -Deduct and remit PAYE and WHT where necessary. -File tax returns on or before the due dates. -Pay taxes when engage in business(profit making) -keep accounting books and records of transactions. -Pay VAT on goods and services consumed (exempted only for those used for humanitarian activity) -Charging and remitting of Vat when engage in business(profit making) For more information see www.tconceptpro.com  or call +234-80 67922530. 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) 2016-Obi Azubuike

-LOSSES INCURED BY A COMPANY -this can be carried forward  or relieved for a maximum period of four years except for Petroleum and agricultural business. Recently loss relief  limit for insurance company was extended indefinitely(that is removed). -The loss to be relieved will not be more than the actual loss. -The loss must be relieved from profit from the same source. For more information call +234-80 67922530. 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) 2016-Obi Azubuike

 Nigerian Personal Income tax rate is charged on a graduating scale after some allowance permitted by law. Some relief allowed includes -20% of  gross emolument Plus200,000 NGN or 1%  of gross emolument whichever is higher. Others includes approved  Pension, gratuity,NHF............ See below the rate. First-N300,000 -7% Next-300,000  -11% Next-500,000   -15% Next-500,000   -19% Next-1,600,000  -21% Above-3,200,000-24% Reference. PITA-LFN For more information call +234-80 67922530 or visit www.tconceptservices.com 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) 2016-Obi Azubuike

A company in Nigeria is subject to minimum tax  -where a company has no taxable profit or the tax payable is less than the Minimum tax. -If not exempted from Minimum tax. Minimum tax is computed as follows The highest of -0.5% of Gross Profit. -0.5% of Net Asset. -0.25% of paid up share capital -0.25% of Turnover up to  500,000 plus -0.125% of turnover in excess of N500,000. For more information call +234-80 67922530. 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) 2016-Obi Azubuike

A company which pays dividend from profit on which tax is not payable because:- - It has no taxable profit; or -Its taxable profit is less than the dividend paid. The company's Dividend paid or declared is charged to tax as if the dividend is the total taxable profit for the 'tax year'. Reference. Company Income Tax Act -LFN. For more information call +234-80 67922530. 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) 2016-Obi Azubuike

- Nigerian company which is liable to pay tax under the Company  Income Tax Act(CITA) in Nigeria for any  year on any part of its profits proves to the satisfaction of the board that is has suffered or, deems to suffer Commonwealth income tax for that tax year in respect of that part of its profit, it shall be entitled to relief from tax paid or payable by it under CITA on the part of profit at a rate thereon to be determined as follows. (I) If the Common Wealth(CW) rates does not exceed one-half of the rate of tax under this Act,  the rate at which relief is to be given shall be the CW rate. (II) In any other case, the rate at which relief is to be given shall be half  of the rate of tax  under this Act. If  any Foreign company is liable to pay tax under the CITA for any tax year on any part of its profit is subject to tax by the Service and suffered  or deemed  to suffer CW income tax for that year in respect of its profit...