Pdf taxation in nigeria pdf

Click download or read online button to get nigerian taxation principles and practice book now. Nigeria currently has dtts with thirteen countries namely. The taxation in nigeria has come a long way to the point where we now have the present form of tax policies. Construction industry, economy, nigeria, public sector, tax system. Taxation and economic growth in nigeria onakoya, adegbemi babatunde1 afintinni, oluwatobi ibukun2 1,2department of economics, banking and finance, babcock university, ilishan remo, nigeria abstract over several decades, taxation has been taken as a veritable medium of engineering the growth or performance of an economy.

Double taxation relief between the federal republic of. Unfortunately, we are far behind on tax law reform in nigeria as the last time any business tax legislation was enacted or. This study examined the relationship between taxation and income inequality in nigeria. Taxation in nigeria has its own series of challenges. Thoughtful, issuesdriven, sociopolitical and economic. Tax credit allowable against tax payable on income derived from outside nigeria. Revenue service firs and the central bank of nigeria cbn.

Under current nigerian law, taxation is enforced by. While competitive enough to bolster the countrys appeal to foreign investors and skilled expats, nigerias tax system is also tasked with the responsibility of providing the government with enough resources to finance the countrys development company tax and. Introduction to taxation government plays an important role in most modern economies. Pdf nigeria is governed by a federal system, hence its fiscal operations also adhere to the same principle, a fact which has serious implications on. Pdf the objective of this study is to investigate the impact of taxation on economic development of nigeria proxy by the gross domestic product. Many companies in the past have lost a huge fraction of their profits to. Home posts tagged nigerian taxation textbooks pdf archives. This site is like a library, use search box in the widget to get ebook that you want. The realities of taxation of taxation in the informal. Taxation books ngo taxation bpp taxation uk taxation taxation p6 taxation pdf what is taxation all about taxation in png taxation taxation sa what is taxation f6 taxation taxation law taxation. The effect of taxation on nigeria economy project topics. Y to ease the complications in the administration of taxation in the informal sector in enugu state for all players in the sector, especially smallscale artisans, traders, including women and subsistence businesses. It is indeed, a vital platform for optimizing revenue generation by the three.

The chartered institute of taxation of nigeria is the professional certified tax administrators in nigeria. Generally, the work is done to determine and know if taxation forms a large part of government revenue and how the utilization of this revenue effectively to promote economic gainful activities, developments and to erase the erroneous belief that it is a. Welcome to the second edition of recent changes in the nigeria tax, the nigerian tax system has undergone significant changes in recent times, these changes are summarised as follows. This study examined the impact of e taxation on nigeria s revenue and economic growth.

The legal framework and system of taxation in nigeria. Taxation must be ac companied with quality service deliv ery, otherwise tax reform would bear ekpo, who was a former central of nigeria cbn director, said incomes are generally low and pov to tax. Mar 21, 2018 how to understand taxation in nigeria if youre considering starting a business in nigeria, either as a local entrepreneur or a foreign investor, tax laws are a very important factor to consider. Many companies in the past have lost a huge fraction of their profits to fines for defaulting tax payments or evading taxes.

Few, ifany have examined this line of research in nigeria. Lets talk about 5 problems of nigerian tax systems. The united kingdom, the netherlands, canada, south africa, china, philippines. The institute of chartered accountants of nigeria ican was established by act of parliament no. The choice of the study period provides an opportunity for. The federal inland revenue service has deployed what it called read more. Double taxation relief between the federal republic of nigeria and the united kingdom of great britain and northern ireland order under section 451 commencement.

The bills proposed amendment removes the double taxation caused by edt, thereby encouraging corporate. Nigeria pursuant to articles 287 and 294 of the convention. This study examined the impact of etaxation on nigerias revenue and economic growth. Taxation in nigeria and history of taxation in nigeria a tax in nigeria is a compulsory levy imposed by the federal government of nigeria on individuals and corporate entities in respective of return of service expected from the government. In the united states, the role of the government extends from providing for national defense to providing social security and medicare to the elderly. The capital gains tax act is a tax compliance drawn up by the federal inland revenue service. Relevant tax authority may assess and charge tax on the turnover of a business, etc. This form of tax is reported to be one of the most stable sources of revenue to governments however. This book is called the tax manual as it covers all principles and practice of taxation in nigeria. Pdf impact of etaxation on nigerias revenue and economic. It is the ideal manual for students studying taxation for degree courses or writing professional examinations in nigeria. Taxation in nigeria understanding nigerian tax system oasdom. Obviously, everything about the nigerian taxation cannot be covered in this article, so try to click the links provided on certain text to get a wider scope and explanation. The main objective of the study is to investigate the impact of taxation revenue on nigeria economic growth.

Chelliah 1989 observed that an increase in indirect taxation compared to direct taxation reduces economic growth more than direct taxation does. Article 4 application of methods for elimination of double taxation notification of existing provisions in listed agreements pursuant to article 44 of the convention, nigeria considers that the following agreements contain a. Impact of etaxation on nigerias revenue and economic growth. This study employed quasiexperimental research design. Table 1 nigerias federal, state and local tax jurisdiction and assignment. In order to provide for these program and services, the government needs revenues.

Any person or individual, corporate sole, organizations who consumes or buys any taxable product or service will have to pay a. Department of commercial law ahmadu bello university, zaria, kaduna, nigeria email. New forms of taxation will be developed, and they will be able to change the face of nigeria. Property tax is generally a tax imposed by municipalities upon owners of real property within their jurisdiction based on the value of such property. Nigerian taxation principles and practice download ebook. This act regulates the personal income tax throughout the federation.

A taxpayer may be liable to nigerian taxation, either because he is resident in nigeria or because the source of his income is located in. Best accounting software for small business owners in nigeria. Pdf an assessment of the prospects of property tax. Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the study empirically examined how the implementation of etaxation in 2015 has affected tax revenue, federally collected revenue and taxtogdp ratio. The relationship between indirect taxation and economic growth has been examined severally by different researchers. To determine the effects of taxation on employment and salaries of working in nigeria. Tax identification number tin in nigeria, every citizen of nigeria working with the government, the private sector or owns.

How to understand taxation in nigeria if youre considering starting a business in nigeria, either as a local entrepreneur or a foreign investor, tax laws are a very important factor to consider. This framework referred to as edt, has generated many controversies in the nigerian tax space. Finance act taxation definition taxation law by kailash rai principles of taxation federal taxation taxation in tanzania taxation in rwanda. Taxation can be defined as the system of imposing a compulsory levy on all income, goods, services and properties of individuals, partnership, trustees, executorships. Government, tax administrators, practitioners and academics alike. The realities of taxation of taxation in the informal sector. A taxpayer may be liable to nigerian taxation, either because he is resident in. Taxation and fiscal regulations in nigeria nigerian law guru. For taxation to make the desired impact on the economic development of nigeria as the major source of government revenue. In nigeria, nobody can dispute the fact that though this taxes are been collected, they are. In addition to the printed version of the wwtg, individual country taxation guides are available in pdf format which can be downloaded from the pkf website at pkf international limited may 20. Tax and taxation in nigeria europeanamerican journals.

Taxation is not a new word in nigeria or the world as a whole. Taxation, revenue allocation and fiscal federalism core. Personal income tax pit and economic growth in nigeria. The aim of this study was to investigate on taxation and its effects in the nigeria economy. It requires clear perception of fiscal terms and concepts as well as. One of the objective carried out by the researcher was to examine peoples perception on taxation. Impact of etaxation on nigerias revenue and economic.

Government imposes levies on individuals, companies, organisations in the form of tax so government machinery. The modern view of taxation stems from the common premises that no one can be an island for him or herself. Taxation in nigeria plus history of taxation in nigeria. In nigeria, taxation has been in existence even before the coming of the colonial men or the british. Tax legislation an overview of the capital gains tax act. The sale of real estate properties is subject to a 10% tax on the gains. Aug 09, 2016 taxation in nigeria and history of taxation in nigeria a tax in nigeria is a compulsory levy imposed by the federal government of nigeria on individuals and corporate entities in respective of return of service expected from the government. History of taxation of nonresident companies1 section 55 of the companies income tax act cita, which is the enabling legislation on the taxation of profits of nonoil producing companies, provides that all companies including those registered in or outside nigeria must prepare and file annual income tax returns. In developing this argument, this thesis gives an overview of oil and gas taxation in both jurisdictions and examines the possibility of transferring laws between nigeria and canada by. Taxation in nigeria understanding nigerian tax system. This means that in the modern society, societal members are. Taxation has been the oldest governmental activity since nigeria s amalgamation in 1914, so one would expect tax statistics to be readily available. Introduction taxation is machinery or process in which society and communities or group of individuals are contributing into an agreed sum which is important for the resolution, development and administration of the public ogundele, 1999.

History of taxation of nonresident companies1 section 55 of the companies income tax act cita, which is the enabling legislation on the taxation of profits of nonoil producing companies, provides that all companies including those registered in or outside. The study period spans economic cycles for about 66 percent of the life of the country, since attaining political independence in 1960. There is a limit to taxation other wise the poverty of the citizens would be aggravated. Value added tax vat in nigeria is levied on all products and services traded within the country and payable to government at a 5% rate, one of the lowest in the world. Nigeria tax system is historical odusola, 2006 dates back to 1904 when the personal income tax was introduced in northern nigeria before the amalgamation, through the native revenue ordinances 1917 the west, the direct taxation ordinance no. Policy will eventually give a new lease of life to, and inspire farreaching reform of, the nigeria tax system in terms of structure, number of taxes. Citn was formed by the government for the purpose of training and educated professionals. Nigerians under the law are to pay 25% of their total worldwide income while foreign individuals are to pay 25% of the profit made in nigeria only. The petroleum profit tax is subject to any resident company or person in charge of a nonresident company who are exploring for petroleum or producing it in nigeria.

Avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital gains belgium original 20111989 03121994 2 agreement between the government of the federal republic. Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the. It is an act established to provide for the taxation of capital gains accruing on disposal of assets. Federal inland revenue service firs we do our best to provide accurate and up to date information. In nigeria, the oecd model has served as the basis on which most of the current double taxation treaties dtts with other countries have been formulated. Administration of the tax 1 the tax shall be administered and managed by the federal board of lnland revenue in this act referred to as the board. Business or trade only partially carried on or deemed to be carried on in nigeria. Impact of taxation revenue on economic growth of nigeria.