Investor Presentaiton
Free Trade Zones & Nigeria Tax Regime
The Legal Framework: Setting the Context (cont'd)
- Withholding tax (WHT) applicable to specified transactions and at
specific rates depending on beneficiary of payment. Final tax for dividends,
interests and loans. Otherwise its advance payment of tax and available as
credit against ultimate tax liability. Lower WHT rates (7.5%, instead of
10%) for treaty residents. Whole or partial exemption from WHT on
foreign loans depending on tenor.
- All Nigerian companies must pay Education Tax at 2% on their assessable
profits pursuant to the Education Tax Act, Cap.E4, 2004 LFN 2004.
- VAT at 5% is levied as consumption tax on supply of goods and services,
unless VAT exempt or zero rated items (sections 2 &3 VATA, Cap. V1, 2004
LFN).
Capital Gains Tax (CGT) applies to gains on disposal of property at 10%
of net gain, but sale of shares and stocks exempt from CGT.
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