SPECIALISED  TAXATION

-Air and sea transport business 

-Engaged in cable undertaking 

-Foreign companies engaged in

 -insurance business(life and non-life)

-Authorized unit trust scheme

 

Income derived in Nigeria  

Exempt 

-loaded or routes outside Nigeria

-In transit in Nigeria  

 

COMPUTATION OF ASSESSABLE PROFIT BY FIRS. 

The format to be used is as prescribed by CITA

 

However this  format can be used as a guide

 

 Adjusted profit ratio=profit b4 depreciation /worldwide income. 

 

Depreciation ratio =Depreciation allowance /worldwide income

 

Assessable profit =income receivable in Nigeria * profit ratio

 

Less

Capital allowance =income Received in Nigeria * depreciation ratio

 

Total profit

Income tax payable= CURRENT TAX RATE.

 

C. Minimum tax

APPLICABE RATE AS SPECIFIED BY CIT

 

 LIFE ASSURANCE 

Investment income

Other taxable income  

Total income. 

Deduct

Management expenditure

Commission

Other allowable expenditure

Adjusted profit 

Less:

Capital allowance 

Relieve

Taxable profit. 

 

Non-Life insurance 

Gross premium 

Less: payment on re-insurance

Returns to the insurer

Net premium 

Add :investment income. 

Commission Received. 

Provisions for unexpired risk at beginning. 

 

Deduct 

-Provision for unexpired risk. 

-claims and commission 

-Agency expenses 

-Administration expenditure.

-head office expenses 

-other allowable expenses. 

Adjusted profit

 

UNIT TRUST SCHEME

Disclaimer: Obi Azubuike is not by this publication acting as a professional advisers and therefore not liable to any  damage whatsoever for your acting or refraining to act based on  this publication. Consult your professional for advice. 

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