Investor Presentaiton
The Country and its
institutions
1.4.6
Business Organisation Labour and Social
and Regulation
Security Regulations
The Nigerian Financial Tax System
Services Industry
Foreign Exchange
Transactions
Investment in Nigeria
Accounting and
Importation of Goods
Exportation of Goods
Auditing Requirements
COVID-19 Economic
and Fiscal Measures
1.4.7
Central Bank of Nigeria (CBN)
Federal Inland Revenue Service (FIRS)
The FIRS, established by the Federal Inland Revenue Service
(Establishment) Act, 2007 (FIRSEA), among other things, is empowered
to assess, collect and account for the tax revenue accruable to the Federal
Government of Nigeria and refund excess tax paid to affected taxpayers.
The FIRSEA confers operational and financial autonomy on the FIRS to
enhance its overall effectiveness and efficiency.
The taxes, levies and duties which the FIRS administer are as follows:
i. Companies Income Tax
ii. Tertiary Education Tax
The CBN is was established by the CBN Act of 1959. The Act was repealed
and replaced by the CBN Act of 1991, which was also repealed and
replaced by the CBN Act, No. 7 of 2007.
The Federal Government of Nigeria is the sole subscriber to the share
capital of the CBN. The principal functions of the CBN, as stated in the
CBN Act and the Banks and Other Financial Institutions Act (BOFIA), 2020
(which repealed the BOFIA, 2004), are to:
•
serve as banker and financial adviser to the Federal Government of
Nigeria;
ensure monetary and price stability;
iii. Petroleum Profits Tax
iv. National Information Technology Development Agency Levy
V.
Value Added Tax
•
issue legal tender currency in Nigeria;
. maintain external reserves
• safeguard the international value of the legal tender currency;
vi. Personal Income Tax
•
promote a sound financial system in Nigeria; and
vii. Withholding Tax?
viii. Capital Gains Tax
ix. Stamp Duties8
The FIRS is empowered to conduct a periodic review of taxpayers' records
with a view to ascertaining their extent of compliance with any or all of the
above taxes. Further, the FIRS is empowered to sanction erring taxpayers
through additional assessments and imposition of penalties and interests
for non-compliance with the extant tax laws.
1.4.8
1.4.9
license, supervise and regulate the activities of banks and other financial
institutions such as microfinance banks, finance companies, leasing
companies, primary mortgage financial institutions and bureaux de
change
Other functions of the CBN include: formulation and implementation of
the trade, exchange, monetary and credit policies of the Government;
regulation of the foreign exchange market; control of Government
expenditure; formulation of currency and banking policies; provision of
funds for public services and institutions; and acting as a general watchdog
over the nation's monetary matters.
Nigeria Customs Service (NCS)
The NCS administers customs and excise duties in Nigeria. It is also
responsible for the enforcement of the country's importation and
exportation regulations.
Federal Ministry of Transport (FMT)
The FMT oversees and administers the country's transport sector
comprising aviation, marine, railways and federal highways.
6 For persons employed by the Nigerian Army, Navy, Air Force, Police Force, officers of the Nigerian Foreign Service and any person resident
outside Nigeria but who derives income or profit from Nigeria. Until the establishment of the Federal Capital Territory Internal Revenue
Service (FCT IRS) in 2015, the FIRS was empowered by law to administer income tax on residents of the FCT, Abuja.
7 Withholding taxes deducted on payments made to limited liability companies are payable to the FIRS.
8 These relate to capital gains tax and stamp duties payable by bodies corporat
KPMG
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