Tax & Business Matters - Nigeria

Nigeria Tax Summaries

Have you ever been in a position where you needed to quickly confirm tax rates, filing deadlines, penalty for default, and other tax obligations? Even if you haven't, don't wait until you are stranded.

Download and bookmark a copy of our updated Tax Data Card for 2015 below and find out key but concise information about luxury tax, VAT, withholding tax, personal income tax, pension contributions, companies income tax and petroleum profit tax, among others.

Download 2015 Tax Data Card_NIGERIA 

NSE issues rules to guide transactions with related parties

The Nigerian Stock Exchange (NSE) has issued Rules which impose certain requirements on listed companies regarding any transactions with related and other interested parties. The Rules were approved by the Securities and Exchange Commission (SEC) in May 2014 and published in November 2014.

Under the Rules, listed companies are to disclose transactions with interested persons in the financial statements and also make formal disclosure to the NSE.

The Rules have been created to guard against the risk that interested persons could influence listed companies, their subsidiaries or associates to enter into transactions that would adversely affect the company or its shareholders.

Read our alert for details Download PwC Tax Alert_NSE related parties rules

Payment for gas flaring is tax deductible

The Tax Appeal Tribunal (TAT) has ruled that the payment made by an oil producing company to flare gas in the course of crude oil production is not a fine to be disallowed for tax purposes but a necessary business expense that is fully tax deductible. This is regardless of whether a written permit was obtained from the government to flare gas.

Gas flaring is the burning of natural gas accompanying crude oil that is being pumped from the ground. To reduce pollution, government seeks to encourage using the gas for other purposes or returning it to the ground rather than flaring it. However, there are instances where it may not be practicable or commercial to do otherwise hence the leeway for the continued flaring of gas.

The principle established by the TAT in this appeal is very important as businesses should not be denied tax deduction for undesirable expenses which they have to incur for reasons beyond their control such as demurrage.

Read a copy of the judgment for more on this decision.

Download TAT ruling on deductibility of gas flaring payment

 

Government appoints a new head for the FIRS

President Goodluck Jonathan today appointed Mr. Samuel Ogungbesan as the acting Chairman of the Federal Inland Revenue Service (FIRS). He takes over from Alhaji Kabir Mashi who has been acting in that capacity since the retirement of Mrs Ifueko in April 2012.

Before this appointment, Mr. Ogungbesan was one of the Coordinating Directors of the FIRS.

We congratulate Mr. Ogungbesan and wish him well in his leadership role at this important and most challenging time for Nigeria.

Government appoints a new head for the FIRS

President Goodluck Jonathan today appointed Mr. Samuel Ogungbesan as the acting Chairman of the Federal Inland Revenue Service (FIRS). He takes over from Alhaji Kabir Mashi who has been acting in that capacity since the retirement of Mrs Ifueko in April 2012.

Before this appointment, Mr. Ogungbesan was one of the Coordinating Directors of the FIRS.

We congratulate Mr. Ogungbesan and wish him well in his leadership role at this important and most challenging time for Nigeria.

Tax Appeal Tribunal rules on the treatment of capital allowance clawback in a disposal of an oil asset

In a recent decision, the Tax Appeal Tribunal (“Tribunal”) held that no capital allowance claw-back (balancing charge) should be computed on the disposal proceed relating to intangible assets on which no capital allowance had been previously claimed.

The Tribunal also held that Petroleum Investment Allowance (“PIA”) should not be considered as part of allowances in computing the ‘residue’ for balancing charge. However, any applicable balancing charge is liable to education tax.

See our alert below for details.

Download PwC Tax Alert_TAT rules on tax on oil asset disposal

You can also download our Tax Calendar for the month below.

Download Tax Calendar_March 2015