Comparative Guides
Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.
Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.
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Results: 4 Answers
Corporate Tax
4.
Cross-border treatment
4.1
On what basis are non-resident corporate entities subject to tax in your jurisdiction?
 
Nigeria
Non-resident corporate entities are subject to company income tax on their Nigeria-source income (ie, profits attributable to the business or trade carried on in Nigeria).

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
4.2
What withholding or excise taxes apply to payments by corporate taxpayers to non-residents?
 
Nigeria
Payments by corporate taxpayers to non-residents are subject to withholding tax at rates ranging from 5% to 10%, depending on the nature of the payment. Investment income such as interest, dividends and royalties is subject to 10% withholding, which is reduced to 7.5% for recipients based in a tax treaty country.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
4.3
Do double or multilateral tax treaties override domestic tax treatments?
 
Nigeria
Yes. For arrangements covered under double/multilateral tax treaties, the treaties will override domestic tax provisions.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
4.4
In the absence of treaties, is there unilateral relief or credits for foreign taxes?
 
Nigeria
Yes, unilateral relief is available by way of deduction for tax suffered on income earned abroad and taxable in Nigeria.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
4.5
Do inbound corporate entities obtain a step-up in asset basis for tax purposes?
 
Nigeria
There is no step-up in asset basis for tax purposes specifically for inbound corporate entities. However, all entities benefit from a 10% step-up on investment in plant and equipment for tax purposes.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
4.6
Are there exit taxes (for disposed-of assets or companies changing residence)?
 
Nigeria
There are no exit taxes, but assets of a capital nature disposed of by a company will be subject to capital gains tax at a rate of 10%. Also, a company is required to compute its tax on a cessation basis in the year of cessation based on the provisions of the Company Income Tax Act.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria