Conclusion These are the most important tax types in Nigeria. Capital gains tax administration in Nigeria is regulated by the capital Gains Tax Act Cap C!, LFN 2004. The Nigeria Income Tax Calculator (NITC) shows in one click a summary of incomes, allowances, deductions and net income both monthly and annual. However, there are different methods of calculating depreciation which […] Assessable profit is the profits from all sources in the year immediately preceding the year of assessment. Yet, in the event that you need to make sense of this, you should put forth a valiant effort and attempt to comprehend it. The Internal Revenue Service outlines four types of income categories. PROFITS (S.9 [1]) Capital Allowance is a claim against Assessable Profits by companies when computing their tax liabilities. Gross income is your total income from all sources. Difference Between Assessable Income & Taxable Income. Examples of Total Assets Formula (with Excel Template) In this post, we take a quick look at the education tax in the country and what it entails. Education Tax in Nigeria: All You Need to Know. So this is the manner by which it works: Before you make sense of the amount of your pay you should provide for FIRS, you have to compute the measure of assessable salary. ... That is, it does not form part of the assessable profit for the purpose of Education Tax calculation; You can also get in touch with us directly by filling the feedback form on … ^^ You should simply have clicked on the link to find out more. Note: Current Assets: Current Assets are those assets that are expected to be converted into cash or cash equivalents within one financial year. Your taxable income is the portion of your assessable income that is actually used to calculate how much you need to pay in income taxes. This tax is remitted to the Education Tax Fund. The tax is charged at 2%. The rate is 85% for Joint Ventures and 50% for Production Sharing Contracts (PSC). The plus value of … The Calculator is a very simple application that helps to calculate tax due in line with the Nigerian Income Tax law. You can decrease the amount of your assessable income that will be used for taxes by subtracting different tax writes-offs from that amount. PETROLEUM PROFITS TAX (PPT) PPT is levied on the income of companies engaged in upstream petroleum operation. This means that all registered companies in Nigeria are required to pay a percentage of their assessable profit into an Education Tax Fund. The rate of tax is 2% of Assessable profits. This implies you have to deduct reliefs and exclusions. Non-Current Assets: Non-Current Assets are those assets that a company holds for more than one financial year, which are not readily convertible into cash or cash equivalents. The education tax is charged on all businesses registered in Nigeria in order to contribute to the educational development of the nation. Everything you need to know about personal income tax act in Nigeria All the non-resident companies in Nigeria are privileged to have a permanent establishment or fixed base in the country. Usually, when companies prepare income statement they always charge depreciation as an expense before arriving at their profit before tax. It is only calculated when a company is computing its tax liabilities. Taxation of Petroleum Profits in Nigeria By Gloria Iroegunam This is a brief but concise overview of how petroleum profits are taxed in Nigeria as provided by the enabling law: the PETROLEUM PROFITS TAX ACT (PPTA) CAP P13 LFN 2004 and all references to the Act herein, shall be regarded accordingly. How To Calculate: This tax is charged based on assessable profit at the rate of 2% only. 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