COMPANY INCOME TAX 2:NIGERIA
CIT RATE IS 30% FOR TURNOVER MORE THAN 100Million
20% FOR TURNOVER MORE THAN 25million < 100million
0 % 25million and less
DIVIDEND EXEMPTED FROM TAXATION..
-Dividend received as bonus issue of share.
-Dividend received from a pioneer company.
-Dividend from a small company
-Dividend of coy under Petroleum profit tax.
-dividend distributed by a unit trust.
-dividend received from foreign investment provided is through dom acc.
-dividend received net of wht by a nig coy from another Nigeria coy.
INTEREST EXEMPTED FROM TAXATION.
-Any interest on a foreign loan.
-interest in agricultural loan-moratorium is not less than 18months
-Any interest on an export loan approve export prom council and proof that not less than 50 percent of the goods produced are for export and are not re-exported back.
The rate at which the interest shall be exempted as provided by cita
Period moratorium rate of exemption.
>7 years not<than 24 months 100%
5-7years not<than 18 months 70%
2-4years not<than 12month 40%
PROFITS EXEMPTED FROM TAXATION-SECT 19 OF CITA
-PROFIT EXEMPTED
Profit exempted
-profit of any coy being a statutory registered friendly society
-engaged in ecclesiatecal,charitable or educational activities of a public character.
-trade union(trade union reg trade union act of 1973.
-coy or corporation registered by the state for fostering economic development
-any coy being cooperative societies.
-promoting sports –expended for sports as prescribed by
-gds exported used wholly for purchase of raw material,plants,equip and spare parts.
-supplies are exclusively input for manufacturing of export-provided certificate of input given.
TAX PLANNING AND INVESTMENT STRATEGY-EBOOK
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