Tax & Business Matters - Nigeria

The Petroleum Industry Act and the Marginal Fields

In this publication, we take a look at the Petroleum Industry Act (PIA) and its implications for Marginal Fields. The article covers the history of Marginal Fields in Nigeria, the changes introduced by the PIA and possible areas for improvement in the regulation of Marginal Fields.

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It’s tax filing season: what you need to know

Individual taxpayers, including business owners, high net worth individuals and employees, must file a tax return in Nigeria by 31 March of every year, in line with the Personal Income Tax Act.

This publication covers 10 key areas to focus on during the tax season, including:

1. Treatment of taxable income, exemptions and allowable deductions
2. Taxation of foreign income
3. Income to be reported in your tax returns
4. Compliance obligations
5. Penalties for failure to comply
6. Determination of Relevant Tax Authority
7. Incentives for timely compliance
8. Technology adoption
9. Rationale for compliance 
10. Tax clearance certificate

See link to Article here:

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TAT says capital gains tax is applicable on gains arising from the sale of rights in an oil field

A company operating in Nigeria’s upstream petroleum sector was awarded 90% participating interest in an oil mining lease. It subsequently assigned half of its interest in the lease to another company. The FIRS assessed capital gains tax on the first company in respect of the gains derived from the assignment.

The company appealed to the Tax Appeal Tribunal (TAT) which holds that CGT is indeed applicable on the gain.

Please read more in our Tax Alert Below:

Download PwC Tax Alert – TAT rules that Capital Gains Tax applies on gains on the sale of rights in oil fields

Insights into the Federal High Court (Tax Appeal) Rules 2022

The Federal High Court recently issued its Tax Appeal Rules 2022 based on the Federal High Court Act and the FIRS (Establishment) Act. The Rules become effective on 10 January 2022. The main objective is to expedite the appeal process from the Tax Appeal Tribunal to the Federal High Court.

Please see our Tax Alert below for more details

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Federal High Court declares that the FIRS has no powers to reduce Pioneer Status granted to companies

The FIRS assessed a company which was granted pioneer status with a 5-year certificate to tax for the last 2 years of its pioneer period. This was on the basis that pioneer status can only be granted for 3 years with a possible extension for 2 years rather than 5 years at a stretch.

The company appealed the assessments on the basis that the FIRS had no powers to retrospectively vary or reduce its 5-year pioneer status. 

Read our Tax Alert below for details:

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Nigeria Tax Summaries - Tax Data Card 2022

Our updated Tax Data Card for 2022 is now available. The publication is a summary of the major tax and related regulations in Nigeria. The publication has been updated to include changes introduced via the 2021 Finance Act and the Petroleum Industry Act, 2021.

This edition is interactive making it easy to navigate. Simply tap on any topic from the content page to access the relevant pages.

This edition covers the following:

1. Capital Gains Tax (CGT)
2. Companies Income Tax (CIT)
3. Information Technology Tax (IT Tax)
4. Personal Income Tax (PIT)
5. Petroleum Industry Act (PIA)
6. Petroleum Profit Tax (PPT)
7. Tertiary Education Tax (TET)
8. Withholding Tax (WHT)
9. Double Tax Treaties (DTT)
10. National Agency for Science & Engineering Infrastructure (NASEMI) levy
11. Nigeria Police Trust Fund (NPTF) levy
12. Customs and Excise Duties (C&E)
13. Stamp Duties (SD)
14. Value Added Tax (VAT)
15. Employee Compensation Scheme (ECS)
16. Industrial Training Fund (ITF)
17. National Housing Fund (NHF)
18. Pension Contributions
19. Local Content Regulations (Cabotage, ICT, Oil & Gas, Power sector)
20. Nigeria Export Processing Zone Act (NEPZA)
21. Pioneer Status Incentives (PSI)
22. Road Infrastructure Tax Credit Scheme (RITC)

Below is a copy of the publication: Download PwC Nigeria_2022 Tax Summaries