01/12/2023 - Accountancy, Assurance, Audit and Tax Services

Management and Tax Implications of Bad Debts: A Focus on FIRS Practices.

Leave a Comment / CAC- Corporate Affairs / By ORE_NYS

Introduction: In the normal course of business operations, organizations often encounter bad debts, defined as expenses arising from irretrievable or uncollectible account receivables. Managing bad debts involves assessing their impairment on a forward-looking basis and reporting them in financial statements, adhering to International Financial Reporting Standards (IFRS) 9 on “Financial Instruments.” Various reasons contribute to …

Management and Tax Implications of Bad Debts: A Focus on FIRS Practices. Read More »

Key Aspects of Company Income Tax (CIT) in Nigeria.

Introduction: Companies operating in Nigeria, earning legitimate income, fall under the purview of the Company Income Tax Act (CITA), Cap C21, LFN 2004 (as amended). While CITA mandates the payment of taxes on revenue from various sources, there are exemptions outlined in the Act. Taxable Income Sources: The following income sources are subject to CIT …

Key Aspects of Company Income Tax (CIT) in Nigeria. Read More »

Accessing Retirement Savings for Residential Mortgages: New Guidelines.

Leave a Comment / Nigerian Tax, Tax / By ORE_NYS

Introduction: The National Pension Commission (PenCom) has recently approved and implemented guidelines allowing Retirement Savings Account (RSA) holders in the Contributory Pension Scheme (CPS) to access part of their RSA balance for equity contributions towards residential mortgages. This development follows the amendments introduced by the Finance Act of 2020, enabling Pension Fund Administrators (PFAs) to …

Accessing Retirement Savings for Residential Mortgages: New Guidelines. Read More »

Proposed Suspension of Telecom Excise Duty Implementation.

Leave a Comment / Nigerian Tax, Tax / By ORE_NYS

Introduction: The Finance Act, 2020, introduced a 5% excise duty on telecommunication services in Nigeria, scheduled for implementation in 2023. Recently, the Minister of Communications and Digital Economy, Isa Pantami, declared a purported suspension of this excise duty during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector. Pantami …

Proposed Suspension of Telecom Excise Duty Implementation. Read More »

Procedures for FIRS Consent and Tax Considerations in Mergers.

Leave a Comment / FIRS, Nigerian Tax, Tax / By ORE_NYS

Introduction: In accordance with the Federal Competition and Consumer Protection Act of 2018, mergers in Nigeria involve one or more undertakings gaining control over the business of another. This can be achieved through share purchase, amalgamation, or joint ventures. The Federal Inland Revenue Service (FIRS) plays a crucial role in the merger process, requiring its …

Procedures for FIRS Consent and Tax Considerations in Mergers. Read More »

Application of Value-Added Tax (VAT) on Financial Institutions’ Services.

Leave a Comment / Nigerian Tax, Tax / By ORE_NYS

Introduction: Under the amended Value Added Tax Act (VATA), a tax is imposed on all goods and services supplied in Nigeria. While an exemption exists for goods and services listed in the First Schedule to the VATA, financial institutions are generally obligated to charge VAT on their services, as clarified by recent legislative modifications. Imposition …

Application of Value-Added Tax (VAT) on Financial Institutions’ Services. Read More »

FIRS Initiates Automation of Taxation for Online Gaming in Nigeria.

Leave a Comment / FIRS, Nigerian Tax, Tax / By ORE_NYS

Introduction: In a Public Notice released in October 2022 titled “Real Time Direct Collection of Taxes from Online Gaming Transactions,” the Federal Inland Revenue Service (FIRS) announced the commencement of the automation process for administering taxes on online gaming activities in Nigeria. The primary aim of this automation is to streamline tax compliance for companies …

FIRS Initiates Automation of Taxation for Online Gaming in Nigeria. Read More »

FIRS Designates Telecom and Banks as VAT Withholding Agents.

Leave a Comment / FIRS, Nigerian Tax, Tax / By ORE_NYS

In a Public Notice titled ‘Value Added Tax Act (CAP V1, LFN 2004) (as amended): Appointment of Certain Companies to Withhold VAT,’ the Federal Inland Revenue Service (FIRS) has officially designated MTN, Airtel, and all Deposit Money Banks (as defined by CBN Guidelines) as appointed agents responsible for withholding Value Added Tax (VAT) on taxable …

FIRS Designates Telecom and Banks as VAT Withholding Agents. Read More »

LIRS Tax Audit Initiative: Ensuring Compliance and Book Accuracy.

Leave a Comment / Nigerian Tax, Tax / By ORE_NYS

Introduction: The consistent decline in annual government revenue has prompted a strategic shift towards diversifying revenue sources beyond crude oil. To achieve this, comprehensive measures are being implemented to identify and rectify revenue leakages. This includes tightening fiscal policies and scrutinizing non-compliant taxpayers through tax audits. State Tax Audit Exercise: Empowered by Sections 47(4) and …

LIRS Tax Audit Initiative: Ensuring Compliance and Book Accuracy. Read More »

Anticipating the Impacts of the Finance Act 2022 on Nigeria’s Fiscal Landscape.

Leave a Comment / Nigerian Tax, Tax / By ORE_NYS

Introduction: Each year, the Fiscal Policy Reforms Committee (FPRC), acting under the Minister of Finance’s directive, revises the Finance Act to adapt to evolving economic conditions. This aligns with the National Tax Policy’s 2017 objective of maintaining a flexible fiscal environment. The journey to enhance Nigeria’s fiscal regime began with the 2019 Finance Act, continuing …

Anticipating the Impacts of the Finance Act 2022 on Nigeria’s Fiscal Landscape. Read More »

December 1, 2023