Company Income Tax (CIT) is the levy imposed on the profits of all registered companies in Nigeria. The tax also applies to foreign entities who carry out business activities in Nigeria. It is paid by all limited liability companies in Nigeria (where public or private). CIT is regulated by the Company Income Tax Act (CITA). The Acts regulates all taxations…
Arbitration is a procedure for dispute resolution. It is carried out outside the courts and resolved by one or more people (arbitrators) who make a binding decision with the arbitration award. An arbitration award legally binds the resolution decision on both sides and is enforceable in court. More often than none, arbitration is used by corporate organizations and businesses to…
Every individual and business venture in Nigeria is mandated by law, to pay taxes. Taxes are financial charges imposed by the government to provide social amenities, infrastructures and improve the overall economy of the country. Tax payment is a civil responsibility, and defaulters are punished by law. The government makes use of taxes to generate revenue and meet up with…
What is Intellectual Property Right? Intellectual property rights are the rights given to people over creative and original works. It gives the creator exclusive right over his creation for a period, as well as the right to claim damages when his/her right is infringed. Intellectual property rights include copyrights, trademark & service marks, patents, and design protection. The type of…
Personal Income Tax (PIT) is a tax imposed by the government on the incomes of all individuals in employment; whether a private organization, government organization, or small business. Personal Income Tax is guided by the Personal Income Tax Act Cap P8 LPN 2004 (as amended), in Nigeria. Tax collection is a federal duty, however, the personal income tax is usually…
Every company that is legally set up in a country can also be legally established in any other country in the world. In Nigeria, setting up a foreign or subsidiary company is somewhat simple. The requirements and procedures for setting up a foreign business in Nigeria are almost the same for setting up a local business in Nigeria except for…
In Nigeria, A business permit is an approval given by the government, which authorizes the operation of a business by a foreigner or foreign entity in Nigeria. A business permit is issued through the Department of Citizenship and Business, Ministry of Interior to the foreign individual or organization. A business permit allows foreigners to commence business legally in Nigeria. However,…
All companies in Nigeria, either private or public are regulated by the Companies & Allied Matters Act (CAMA). The CAMA regulates and supervises the formation, registration, and incorporation of all companies and businesses in Nigeria. Unlimited companies, business registration, incorporated trustees, and the general affairs of businesses and companies in Nigeria, are all regulated by the CAMA LFN 2004. Under…
Value Added Tax (VAT) is a tax on the supply and distribution of goods and services. VAT is collected during the production and distribution chain. It is however known as a consumption tax because it is eventually borne by the final consumer. VAT is on economic operations in Nigeria including imported goods and services. In Nigeria, the standard rate of…
Tax Clearance Certificate is an official document that certifies that all income tax a specific period of time has been paid in full. A tax clearance certificate (TCC) is also called Tax Form Z. In Nigeria, the tax clearance certificate is issued by the Federal Inland Revenue Service (FIRS) for only companies and issued by the State Inland Revenue Services…