irs.lg.gov.ng Capital Gain & Withholding Tax Nigeria : Lagos State Internal Revenue Services

Organization : Lagos State Internal Revenue Services
Type of Facility : Capital Gain & Withholding Tax
Country: Nigeria

Website :
http://www.irs.lg.gov.ng/tax-types/capital-gain-tax/
http://www.irs.lg.gov.ng/tax-types/with-holding-tax/

Capital Gain Tax :

This is a tax chargeable at the rate of 10% on capital gains arising from the disposal of capital assets.Capital gains mainly represent the excess of disposal proceeds realized over the cost of the particular asset.

Related : Lagos State Internal Revenue Services Pay As You Earn & Direct Assessment Nigeria : www.statusin.org/8984.html

The effects of some of the provisions of the Capital Gains Tax Act 1967 are as listed below:
1.Capital loss on disposal of any asset is not deductible from capital gains on disposal of any other asset even if both are of the same type.
2.Chargeable gains are assessed on current year basis. In other words, the assessment is based on the year the asset is disposed.
3. Roll-over relief is available to any company acquiring a new asset to be used for the purposes of the trade in replacement of an old one. This is of particular interest to companies as there could be benefit accruing to those that would want to claim the relief.
4. When the consideration is payable by installments over a period exceeding 18 months, the chargeable gain shall be apportioned to the affected assessment years in proportion to the amount of the installments payable in each of the years.
5. The production of evidence of payment of applicable capital gains tax is a condition for effecting change of ownership of property.
6. Currently, gains arising from disposal of shares and stocks are exempted from capital gains tax.

Withholding Tax:
Withholding Tax is the deduction of the tax at source from payment made to a taxable person or company in respect of income derivable from services or investments. It is not another form of tax but simply an advance payment of the tax, as the tax deducted at source can be off-set against any subsequent tax liability that may be due in respect of such income. In certain cases, the withholding tax deducted at source is the final tax e.g. Interest and dividend.

The authority of the deduction of Withholding Tax at source is contained in Sections 69, 70, 72 and 73 of the Personal Income Tax Act in respect of individuals and Sections 78, 79, 80 and 81 of CITA Cap. C21 LFN 2004 in respect of Companies.

The Tax provisions referred to above deal with deductions from rent, interest, royalties, dividends, directors’ fees (PITA only) and other payments.It is under these Sections that the application of the general provisions contained in Section 73 PITA and Section 81 CITA widens the scope of Withholding Tax deductions to including building contracts, contract of supplies, consultancy and professional service, which are not specifically mentioned in the Tax Acts

Contact Adddress:
Address:
Lagos State Internal Revenue Services
The Good Shepherd House,
Block H,Plot H1,CBD,
Alausa,Ikeja,Lagos

Contact Details:
08082572444
08059889830, 07034954595
info@irs.lg.gov.ng