LIRS issues Public Notices on Capital Gains Tax and Personal Income Tax on the sale of securities

The Lagos State Internal Revenue Service (LIRS) has issued Public Notices pursuant to recent tax law changes, highlighting compliance requirements from taxpayers and other relevant parties resident in the state.

The relevant tax law changes include:

1. The Capital Gains Tax (CGT) Act historically exempted gains on the disposal of Nigerian government securities, stocks and shares from CGT. The Finance Act 2021 has amended the CGT Act to introduce CGT on the disposal of shares, subject to certain conditions.
2. The Minister of Finance (MoF) issued a Notice effective from 2 January 2012, exempting interest and other income earned from government, corporate and supranational bonds from PIT. The MoF Notice highlighted that the exemption was for a period of 10 years (i.e until 1 January 2022), except for FG bonds which will continue to be exempt. The 10-year period has now lapsed, and the LIRS communicated that the exemptions have expired.

We have analysed the LIRS Public Notices, including the recently introduced compliance requirements and the technical merits of the LIRS' position, in our Tax Alert below: 

Download PwC Tax Alert - LIRS issues Public Notices on Capital Gains Tax and Personal Income Tax on the sale of securities