WITHHOLDING TAX (WHT)
Applicable tax law : Withholding Tax (WHT) is not a distinct tax type and therefore has no legislation of its own. It is only a mechanism for the collection of other taxes. Consequently, its application is provided for in the enabling law of other tax types i.e. Section 81 of Company Income Tax Act, Section 54 of Petroleum Profit Tax Act, Section 73 of Personal Income Tax Act and Section 13 of Value Added Tax Act
Persons subject to the Withholding Tax : Persons subject to the various tax types may be subject to Withholding Tax deductions for the purpose of offsetting their tax liabilities. WHT deductions are regarded as advance payments (or payments on account) of the relevant tax liability that will arise from the tax returns of the period concerned.
Where to pay the Withholding Tax: Where the person benefiting from the payment and the income are taxable, Withholding Tax (WHT) is paid (deducted) at the point of making payment. It is withheld by the payee and the net amount is then paid to the beneficiary through the designated bank(s).
How to pay Withholding Tax The amount deducted at the point of payment is remitted directly to FIRS through a designated bank in a prescribed format in the name of the person subject to the deduction.
EDUCATION TAX (EDT)
Applicable tax law for persons subject to the Education Tax All companies liable to Companies Income Tax are also liable to Education Tax. In other words, all companies registered or resident in Nigeria are liable to pay Education Tax.
Where to pay the Education Tax: Education Tax is paid at the point of payment of Companies Income Tax or Petroleum Profits Tax. How to pay the Education Tax
As part of the annual Companies Income Tax self-assessment returns, taxable persons also compute and submit their Education Tax liabilities and make payment at the designated bank.
STAMP DUTIES (STD)
Applicable tax laws for persons subject to Stamp Duties
The items and persons subject to stamp duties are instruments (written documents) relating to matters executed between a company and an individual, group or body of individuals. Instruments which may be subject to stamp duties include financial instruments/transactions, company memorandums and articles of association, statements of share capital ownership, bonds, conveyances on sale, depositions, lease agreements, mortgage bonds, debentures, etc.
Where to pay Stamp Duties; Stamp duties on eligible instruments can be paid through designated banks. How to pay the Stamp Duties Companies and persons issuing or dealing with all chargeable instruments shall submit such instruments to the Stamp Duties Office for stamping. The Commissioner of Stamp Duties shall then assess the instruments submitted in line with the provisions of the Stamp Duties Act and specify the duties payable. The duties are then paid to FIRS at the designated bank.
CAPITAL GAINS TAX (CGT)
Applicable tax laws to persons and properties subject to the Capital Gains Tax
All companies incorporated in Nigeria which earns any capital gains or gains on the disposal of all forms of assets. All forms of property (whether situated in Nigeria or not) that are liable to capital gains tax include: Options, debts and incorporeal property generally; Any currency other than Nigerian currency; and Any form of property created by the person disposing of it, or otherwise coming to be owned without being created
Where to pay the Capital Gains Tax
Capital Gains Tax is paid at the designated at which the company making the chargeable capital gain pays its Companies Income Tax.
How to pay the Capital Gains Tax In line with the provisions of the Capital Gains Tax Act and the self-assessment regulations presently in operation, a company shall compute the gains on the disposal of all forms of assets in each year of assessment and submit same together with its Companies Income Tax returns. The returns shall also be accompanied by evidence of the payment of the full amount or first installment of the tax due. Payment is made to the designated bank.
NATIONAL INFORMATION TECHNOLOGY DEVELOPMENT FUND (NITDF) LEVY
National Information Technology Development Agency Act, 2007 for persons subject to the NITDF Levy Companies and enterprises with an annual turnover of N100,000,000.00 and above operating as: GSM Service Providers or telecommunications companies; Cyber companies and internet providers; Pensions managers and pension related companies; Banks and other financial institutions; Insurance companies.
Where to pay the NITDF Levy
The levy is paid through the designated bank at which the chargeable companies pay their Companies Income Tax How to pay the NITDF Levy As part of its Companies Income Tax returns, a company shall compute 1% of the profit before tax of each year of assessment. The tax due shall then be paid to FIRS through the designated bank.