Provides that “subject to the provisions of this act, the tax shall for each year of assessment be payable at the rate specified under section 40(1) of this act upon the profits of any company accruing in, derived from, brought into, or received in nigeria in respect of any amount of profits or gains arising from. The current rate of petroleum profits tax is 50% for operations in in the deep offshore and inland basin thus, corporations engaged in oil exploration in nigeria must file two types of returns under ppta in an accounting period (a) under section 33 of the ppta, estimated ppt returns must be filed not later. (2) this agreement shall also apply to any identical or substantially similar taxes which are imposed by either contracting state after the date of signature of this agreement in addition to, or in place of, the existing taxes the competent authorities of the contracting states shall notify each other of any substantial changes. Than eliminate corporate tax in nigeria, lower corporation tax will increase the demand for labour which in turn raises wages and increases consumption therefore, a reduction in the corporation tax rate will reduce the incentives to shift profits out, protecting the corporation tax base tax reductions will. Of quoted firms in nigeria that is, whether trade – off theory which supports a positive relationship or pecking order theory which supports a negative relationship the study seeks to examine this relationship 2 literature review without doubt, the most prominent tax-related capital structure anomaly is that profitable.
Profits tax is payable by every company carrying on a trade, profession or business in hong kong on profits arising in or derived from hong kong from that trade profits which have a foreign source (often termed 'offshore profits') are thus generally beyond the territorial scope of hong kong's taxation system, including. Knowledgeable of the tax system and better able to challenge any policy perceived to be offensive and injurious to their interests table 1: summary of tax costs in nigeria, by state 5 world bank's doing business survey revealed nigerian businesses on average paid around 32 percent in pretax on profits, compared to. Abstract: the study examined the issues and challenges inherent in the nigerian tax system the theoretical framework approach was adopted in this study the nigerian tax system is designed as a means of income generation the three tiers of government have the responsibility of tax administration in.
Keywords: effective tax rate (etr), financial performance, thin capitalization, tax practitioners, nigeria tax of increasing profitability poses more challenge on firm's ability to reduce its tax liability effective tax tax management on the financial performance of manufacturing firms quoted on nigerian stock exchange. Chapter two : overview of the nigerian tax system and structure 21 introduction 22 overview of the nigeria tax structure 23 major federal government taxes 231 company income tax (cit) 232 petroleum profit tax (ppt) 233 customs and excise duties 234 value-added tax (vat) 24 tax.
Tax (wht) regime, imposition of 10% special levy on bank's excess profits and imposition of 21 or 22 percent turnover on building and construction companies the 1992 study group (sg) on nigeria tax system and system and administration headed by professor emmanuel edozien, recommended the establishment of. Effects of multiple taxation on growth and profitability of small scale enterprises in nigeria this is done by the different tiers of government-federal, states and local governments with respect to their fiscal powers (tax powers) however, the rate at which the governments concerned. The current practice is for firs to deem 20% of the turnover as profit and subject such profit to income tax at the rate of 30% the cost incurred is assumed to be 80% this eventually translates to an effective tax rate of 6%, with most nrcs making a cash payment of 1% of the turnover, since taxes would have been withheld.
Tax rate cause reduction in profitability of oil and gas firms in nigeria for the period 2011 to 2015 it is recommended that government should reduce the tax rate to enable oil and gas firms strive especially during this economic recession keywords: petroleum, tax, profit, oil and gas, profitability and listed companies. Of their profit this adds to capital gain taxes paid by the company put together, companies pay between 35 and 40 percent of their profit as tax indeed, there has been the perception that in 2007 that the gains made from the reduction in the corporate tax rate to 25 percent will be derailed by other forms of. (b) the payments of minimum tax by companies that make small or no profits at all do not apply to agro-allied business (c) agro-allied plant and equipment enjoy enhanced (f) agricultural credit guarantee scheme fund (acgsf) administered by the central bank of nigeria: up to 75% guarantee for all loans granted by.
Such systems of taxation vary widely, and there are no broad general rules these variations create the potential for double taxation (where the same income is taxed by different countries) and no taxation (where income is not taxed by any country) income tax systems may impose tax on local income only or on worldwide. Perceptions that the nigerian banking system was sound and insulated from the global financial crisis were on the profitability of banks in nigeria using the basel accord framework the rest of this study is figures 1a and 1b show profit after tax for the nine international banks in nigeria zenith bank plc (zb) had the. Of the company indicated positive significant effects on profitability index keywords: profitability indices, taxes, financial ratios, the companies listed in tehran stock ex- change, panel revenue under a fair and efficient tax system is very important darity between ict and banks profitability in nigeria it means that a little.