Tax Policy in Nigeria: All You Need to Know

The National Tax Policy is a document that provides all the necessary information relating to taxation.

The Tax policy enumerates the monetary charges imposed by Government on individuals, companies, transactions or properties for the purpose of revenue generation.

Taxes could be imposed directly or indirectly on the following bases:

Tax on Individuals

Personal Income Tax

This form of tax is imposed on the income of all Nigeria citizens or residents who obtain their income in and outside Nigeria.

Development Levy

This is a flat charge imposed on every taxable person typically within a State.

Tax on Companies or Corporate Entities

Companies Income Tax

This tax is imposed on the profits of all corporate entities who are registered in Nigeria or derive income from Nigeria, other than those engaged in petroleum operations.

Petroleum Profits Tax

This is imposed on the profits of all corporate entities that are registered in Nigeria or who get their income from oil and gas operations in Nigeria.

Education Tax

This form of tax is imposed on all corporate entities registered in Nigeria.

Technology Levy

This is imposed on selected corporate entities such as telecommunication companies, internet service providers, pension managers, banks, insurance companies and other financial institutions within a specified turnover range.

Tax on Transactions

Value Added Tax

This tax is imposed on the net sales value of non-exempt, qualifying goods and services within Nigeria.

Capital Gains Tax

This is imposed on capital gains gotten from sale or disposal of chargeable assets.

Stamp Duty

This is imposed on instruments executed by individuals and corporate entities in Nigeria.

Excise Duty

This form of tax is imposed on the manufacture of specified goods within the Government territory collected by the Nigeria Customs Service.

Import Duty

This is imposed on the importation of goods into the Government territory collected by the Nigeria Customs Service.

Export Duty

This form of tax imposed on the export of goods outside the Government territory collected by the Nigeria Customs Service.

Tax on Assets
This form of tax include property tax and other such taxes imposed on land or landed property owned by and individual or corporate entity.

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