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The Land Use Act, Cap. L5 LFN 2004 (the
"LUA") is the principal legislation
governing the acquisition of interests in real
property. Under the LUA, legal title to all land
in each constituent State in the Nigerian federation is vested in
the Governor of such State, who holds same in trust for the people
of the State. Accordingly, there is no ownership in fee simple, and
the highest level of interest held in land is a right of occupancy
granted by the Governor of State or a local government authority,
evidenced by a Certificate of Occupancy.
Foreign entities seeking to carry on business in Nigeria can
legally hold interests in real property, subject to certain
restrictions. For instance, by virtue of Sections 1(i)(a) and 2(1)
of the Acquisition of Lands by Aliens Law, Cap 2 Laws of Lagos
State 1994, the Lagos State government allocates lands to foreign
companies and individuals for a maximum tenor of twenty-five (25)
years. However, this restriction is not strictly enforced.
Tax Registration
The CITA provides for the taxation of profits of companies
(other than oil & gas producing companies). For this reason,
all companies assessable to tax under CITA must register with the
FIRS and obtain a tax identification number
("TIN"), immediately after
incorporation. The TIN must be reflected on all returns filed or
correspondence exchanged with the FIRS.
The Personal Income Tax Act, Cap P8, LFN 2004, as amended by the
Personal Income Tax Act 2011, establishes a pay-as-you-earn tax
system whereby employers are required to act as agents of the tax
authorities for the purpose of collecting and remitting taxes on
salaries due to their employees. For this purpose, every employer
is required to register with the zonal office of the tax authority
in the State where its place of business is located. This
registration is expected to be undertaken immediately after
incorporation.
By the provisions of the Value Added Tax Act, Cap V1, LFN 2004
as amended by the Value Added Tax Amendment Act No. 12 of 2007, all
manufacturers are required to register with the FIRS within six (6)
months of commencement of business.
We trust that the foregoing provides an insight into the
business climate in Nigeria; and we remain available to render
specific advisory services (including in relation to matters
contained in this manual) where you require same.
The information contained here is based on relevant Nigerian
laws, regulations and practices applicable to doing business in
Nigeria, as of November 14 2018. This Manual only
highlights legal issues, in general, and is not exhaustive. Also it
does not, and it is not intended to, constitute legal advice and or
opinion. If you have questions or require advice in respect of
matters contained herein or any other specific issues, kindly
contact us for such advice and we would be happy to assist you on
an individual basis and walk with you on your journey to explore
the limitless opportunities for investments in Nigeria.
Banwo & Ighodalo does not accept liability for any
action (or lack thereof) by you or anyone else as a result of
reliance on, or any other use of, information contained herein. For
the avoidance of doubt, under no circumstance shall Banwo
& Ighodalo be liable for any consequences resulting from
reliance on or use of information contained in this
Manual.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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On 11 December 2018, the Court of Appeal, in the case between Best Children International Schools Limited, held that the Company is liable to Companies Income Tax, regardless of its claim to be an educational institution.
On 25 January 2019, President Muhammadu Buhari signed Executive Order (EO) 007 on the Road Infrastructure Refurbishment and Development Tax Credit Scheme (Scheme).
On 1 January 2019, the Kingdom of Bahrain became the third Gulf Cooperation Council (GCC) member state to introduce VAT at the standard rate of 5%, following the United Arab Emirates and Kingdom of Saudi Arabia.
At a recent sitting in Abuja, the Federal High Court (FHC) ruled that income tax assessment notices issued by Federal Inland Revenue Service (FIRS) based on deemed turnover,
