FINANCE

COMMENCEMENT RULE IN TAXATION-NIGERIA

 
 
COMMENCEMENT RULE.

This rule below applies when the business is new.
YR1=DATE OF COMMENCEMENT TO 31 DECEMBER OF THE SAME YR
YR2=12MONTH FRM DATE OF COMMENCEMENT.
YR3=PYB=WHERE NOT POSSIBLE REPEAT 2ND YEAR FIGURE=WHERE LESS THAN A YEAR AND MORE THAN A YEAR.
The result is compared with Actual year basis. The lower tax result is elected.
The finance act 2020 has  changed the rule  of taxation based on the actual profit for the year

 
 

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