In Nigeria, employers are mandated to deduct their employees' Personal Income Tax from emoluments paid to the employees and remit the deducted taxes to the relevant tax authority under the Pay-As-You-Earn (PAYE) Scheme. The employer acts as the agent of the tax authority and is required to file a return of all emoluments paid to its employees and account to the tax authorities for the deductions made. The extent of the employer's liability with respect to an employee's other sources of income was in contention in a recent appeal before the Tax Appeal Tribunal between First Bank of Nigeria v Akwa Ibom State Revenue Service. In this publication, we take a look at the judgment of the Tribunal in the referenced appeal. #Tax #TaxAppeal #TaxLaw
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Deduction of tax at source (Withholding) Regulations 2024 contains major changes to the withholding tax system in Nigeria. The commencement date is 1 July 2024. We expect an official gazette in the coming days. To download, click https://lnkd.in/ddkgEeYc
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Looking for a good summary of changes to the withholding tax regime in Nigeria? Read through Deloitte's analysis. The increase in WHT on director's fees for Individuals to 15% is more reflective of the effective tax rate of individuals who receive this class of income than the previous 10%. I am personally looking forward to a modification to tax refund process in Nigeria for instances of actual overpaid tax. Would love to read your thoughts. #Nigeria #WHTregulations2024. #WHT
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Tax Compliance Trivia Thursday How well do you know tax compliance in Nigeria? Let's find out! Trivia Question: What is the penalty for failing to file your personal income tax return on time in Nigeria? A) ₦10,000 B) ₦25,000 C) ₦50,000 D) 5% of the tax due Think you have the answer? Share your guess in the comments, and we’ll reveal the correct answer tomorrow! #taxtrivia #aoaprofessionalservices
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VAT Reform Proposal Sparking Debate! In a recent statement, Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, addressed concerns raised by the Northern Governors’ Forum regarding the proposed Value Added Tax (VAT) distribution model. This response comes after the rejection of President Bola Ahmed Tinubu’s Nigeria Tax Reform Bill by the 19 northern state governors. They expressed their opposition, particularly to the amendment suggesting that VAT distribution should be based on where goods and services are consumed, rather than the location of businesses. Read more at https://lnkd.in/eadv6G9B #TaxReform #NigeriaEconomy #FiscalPolicy #EntrepreneurNg
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NIGERIA TAX BILL AND THE POTENTIAL REPEAL OF THE STAMP DUTIES ACT – WHAT LIES AHEAD? To address the challenges posed by the multiplicity of taxes, and promote a more harmonized taxation framework, the Nigerian government has introduced a suite of legislative proposals aimed at reforming the country’s tax system. Amongst these, is the Nigeria Tax Bill (the “Bill”), which seeks to consolidate various legal frameworks governing taxation. Whilst we have discussed the Bill’s implications for free zone enterprises in our previous briefing note, this briefing note focuses on the Bill's impact on the extant Stamp Duties Act (as amended), Cap. S8, LFN, 2004 (“SDA”), by highlighting the salient provisions of the Bill as it relates to the administration of stamp duties in Nigeria. Continue reading here 👇🏽 https://lnkd.in/dNgtCEpC
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#TaxTipOfTheWeek Withholding tax (WHT) is a form of income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee). This tax is deducted at source and remitted to Uganda Revenue Authority (URA) in advance by the withholding agent. #BusinessTimesUG #BusinessNews
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Question:Under the Companies Income Tax Act (CITA) in Nigeria, which of the following expenses is generally considered non-deductible for tax purposes? Choose the right option to the question and answer in the comment section. #taxtuesday #taxquiz #taxtips
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Did You Know? Did you know that Nigeria's new tax regulations are set to revolutionize the country's revenue collection and public service funding? Withholding Tax (WHT) acts as an advance payment of income tax, deducted at rates between 5% and 10% depending on the transaction. This system helps ensure tax revenues are collected before the income reaches the taxpayer, reducing the risk of tax evasion and underreporting.
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FIRS PUBLIC NOTICE ON THE NEW WHT REGULATION The Federal Inland Revenue Service corroborated the implementation date in the official gazette of Deductions of tax at source (Withholding) Regulations 2024 through a Public notice it released on 03 October 2024. To this effect, January 1 2025 is the substantive date to officially implement the new regulations. However, the July 01 2024 effect cannot be downplayed. Many companies already deduct withholding tax based on the release from the Hon Minister of Finance. The lacuna here is the change that organizations that have implemented the new change based on the release of the Hon Minister will have to reverse to the old rate and revert by January 1 2025. In all, the new WHT regulations is a much welcomed development in the Nigeria tax system.
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Are you aware of the new developments in Nigeria’s withholding tax requirements? The Federal Ministry of Finance recently released the Deduction at Source (Withholding) Regulations 2024, bringing significant changes to the Withholding Tax (WHT) regime. All businesses, organisations (even tax-exempt ones), government entities, and payment agents must deduct WHT on eligible transactions. Stay ahead of the curve with our latest #TaxAlert, where we break down the implications and highlight key issues. Read now and ensure compliance! https://ow.ly/jmy450SyHk0 #WithholdingTax #TaxAlert
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