Property taxation in nigeria pdf

Having firmly and solemnly resolve, to live in unity and harmony as one indivisible and indissoluble sovereign nation under god, dedicated to the promotion of interafrican solidarity, world peace, international cooperation and understanding. Pdf introduction taxes are known to be levies paid by citizens of a. Introduction following this brief introduction, part ii of this paper sets out briefly the rationale for taxing land and property, both as a source of local government revenue and in terms of its effects on efficient land use. Capital gains tax act 1990 world intellectual property. Property taxation in south africa1 the population of south africa is 44 million. During this time, the tax administrators then were the traditional chiefs tax agents. Introduction globally, taxation is the nucleus and the path to development because it is one of the formidable options.

The intellectual property rights of the author or third parties in respect of this work. Desiring to conclude an agreement or the avoidance of double taxation and the. The study period spans economic cycles for about 66 percent of the life of. It is a practice that was hardly known to customary law. In nigeria, property taxation has limited revenue potential firstly because the nation places higher priority on oil revenue and secondly because in many cases it has proven difficult to administer.

Tax and taxation in nigeria europeanamerican journals. This study examined the impact of etaxation on nigerias revenue and economic growth. It requires clear perception of fiscal terms and concepts as well as. Property tax is generally a tax imposed by municipalities upon owners of real property within their jurisdiction based on the value of such property. Guess how many nigerians pay tax and how our government. Withholding tax in nigeria administration and rates.

The tax system in nigeria is made up of the tax policy, the tax laws and the tax administration. Lets take a short walk through time to understand what we. In ethiopia, mozambique and in several states in nigeria, municipal governments. The land use act and equity factor in property taxation in nigeria. Once payment has been captured by the bank collecting system, an eticket is issued is issued the company, this eticket is proof of payment and when presented at the integrated tax office with jurisdiction an ereceipt will be issued.

Avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains the government of the federal republic of nigeria government of the united kingdom of great britain and northern ireland. Personal income tax act arrangement of sections part i imposition of tax and income chargeable. Tax policy forms the basis for tax laws while tax administration is the implementation of the tax laws. Pdf an assessment of property tax administration in edo state. The chartered institute of taxation of nigeria chartered. The petroleum profit tax is subject to any resident company or person in charge of a nonresident company who are exploring for petroleum or producing it. This enabling environment which came into being on the basis of section 8q of firs establishment act 2007 has led to an. The traditional property tax is controversial because it is widely perceived to be unfair and regressive. Simplifying the tax code encourages voluntary compliance, while at the same time sending the message that efforts to formalize the system are a priority.

Dye and england assessing the theory and practice of land value taxation 5 chapter 1 property tax reform. Failure to register such a document implies that the document is void. Impact of tax administration on government revenue in a developing economy. The land instruments registration law of lagos state requires that any document affecting land in lagos state, in whatever manner, must be registered at the lands registry. As noted earlier, one of the most advanced registration system in nigeria exists in lagos state. In nigeria, property taxation has limited revenue potential firstly because the nation. Under current nigerian law, taxation is enforced by the. Taxation, the world over, has been viewed as a method of mobilizing and sustaining a nations financial resources. In this post we look at the problems and prospects of taxation in nigeria. Therefore, instructively, this paper shall focus on the role of most populous cities in the world 9 and the only state in nigeria land and property taxation on land. The good, the bad, and the ugly other vital services, the property tax has also become a lightning rod in american politics. Home archives for property taxation in nigeria pdf. All types of contract activities and arrangements, other than outright sale and purchase of goods and property. Where the income earner is a corporation, the corporate tax rate in nigeria is thirty per cent 30% of the annual profit of the corporation.

Allied to the above discussion is the question whether in relation to crossborder trade nigeria s supply tax regime is modelled after the origin or destination principle. Taxation as an alternative to dwindling oil revenue in nigeria. The federal inland revenue service firs is the federal government agency in nigeria responsible for the administration and collection of taxes. An assessment of the prospects of property tax administration in.

An assessment of the prospects of property tax administration in nigeria. Where a person rents or hires property services from another, wht at the rate of 10% will apply. The tax authority now has autonomy to assess, collect and record tax. Article pdf available in the indonesian journal of geography 511. Guess how many nigerians pay tax and how our government spends the money well, if your guess is as good as mine, then you will. Property taxation in nigeria interrogating the policy and law towards sustainable reform, prof. Introduction globally, taxation is the nucleus and the path to development because it is one of the formidable options to generate revenue by government. But where a person provides services to another for e. Pdf an assessment of the prospects of property tax. This classification is wide enough to capture every transaction, other than outright purchasesale of goods and property. The tax revenue collection in nigeria faces some formidable problems which includes the high tax rates and complex filing procedures, multiple taxation and lack of proper enlightenment, lack of statistical data, poor tax administration, and inability to prioritize tax effort, multiplicity of taxes and increase in underground economy. Land and property taxes for municipal finance international growth.

This site is like a library, use search box in the widget to get ebook that you want. Ten quick steps to unlocking taxrevenue collection in. Double taxation relief between the federal republic of. Mar 21, 2018 these will help you run your business legally in accordance with the tax laws and regulations in nigeria.

Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the study empirically examined how the implementation of etaxation in 2015 has affected tax revenue, federally collected revenue and taxtogdp ratio. Department of commercial law ahmadu bello university, zaria, kaduna, nigeria email. The relationship between transportation and urban property values has been the focus of many studies for example, dewees, 1976. Companies incorporated in nigeria and organizations limited by guarantee pay companies income tax through any of the designated banks. In addition to paying companies income tax, incorporated corporations in nigeria, engaged in any commercial activity, including real estate or real property transactions from which they make a profit, are liable to pay two per cent 2% of such profit as education tax to the education trust fund. Many of them have covered all its ramifications while some have effectively appraised the problem of tax administration in. It was stressed that property tax is appropriate as a local revenue source because real property is immovable and domiciled within a community, thus it is unable to shift location in response to the tax. Implications the ratification of the treaty is a positive development between the two countries. Legal costs incurred in defending right to company. A look at the proposed property tax in the fct by taiwo oyedele property owners and tenants in the federal capital territory fct should brace up for more taxes if the proposed bill currently under consideration at the national assembly is anything to go by. The main objective of this paper is to espouse taxation as an alternative to dwindling oil revenue in nigeria. Relevant tax authority may assess and charge tax on the turnover of a business, etc.

Below is a comprehensive analysis of taxation in nigeria and the necessary rules, laws, and clarifications. Taxation can be defined as the system of imposing a compulsory levy on all income, goods, services and properties of individuals, partnership, trustees, executorships. This form of tax is reported to be one of the most stable sources of revenue to governments however. Click download or read online button to get nigerian taxation principles and practice book now. The destination principle, which is the wtosanctioned international norm, advocates taxation at the point of consumption. Taiwo oyedele is the head of tax and regulatory services at pwc nigeria and tax leader for pwc west africa. The purpose of this paper is to present some of the major moments in the history of real and personal property taxation. Some of the outcomes of the advocacy from the 2012 craft research include the introduction of the presumptive tax regime by the federal inland revenue background to the study report of research on taxation in the informal sector in abia state several levels of governments, especially at subnational and local. To start, here are two basic facts about taxation in nigeria. Taxation and fiscal regulations in nigeria introduction the nigerian tax system has undergone significant changes in recent times. Property tax is an untapped goldmine in nigeria the. Tax types in nigeria by firs federal inland revenue service.

Nigeria fiscal guide 20172018 income tax generally, all companies other than those engaged in petroleum operations are subject to companies. He is an author and public speaker on tax, business and. Fb increased these rates of tax, applicable on gross amount of rental income. The study focuses on the impact of petroleum profit tax, company income tax, personal income tax, value added tax revenue on nigeria s economic growth between 1980 and 20. Impact of etaxation on nigerias revenue and economic growth. Individuals and association of persons deriving income from property income from property derived by an individual or an association of persons aops is a separate block of income, liable to tax at the specified slab rates. The africa tax guide 201819 is an annual publication that provides an overview of the taxation and business regulation regimes of africas most significant trading countries. For example, in 2009 south africa introduced a less complicated turnover tax as an alternative to the normal corporate income tax and valueadded tax. Taxation and economic growth in nigeria onakoya, adegbemi babatunde1 afintinni, oluwatobi ibukun2 1,2department of economics, banking and finance, babcock university, ilishan remo, nigeria abstract over several decades, taxation has been taken as a veritable medium of engineering the growth or performance of an economy. Nigerian taxation principles and practice download ebook.

Why smes and startups in nigeria do not pay taxes victor ekwealor march 16, 2017 a businessday report shows that nigeria s tax income has decreased by 76% over 5 years. Taxes on land and property have both fiscal and nonfiscal. As you will appreciate, the production of the wwtg is a huge team effort and i. In nigeria, the land use act imposes tax on landownersusers, outside. Challenges and prospects, a case study of lagos state board of internal revenue service, largest undergraduate projects repository, research works and materials. At this time, it most farm produce and other primary goods. Pdf land and property taxation on land and infrastructural.

Assessing the theory and practice of land value taxation. How can taxes on land andor property taxes include more of these assets. An assessment of property tax administration in edo state, nigeria. The impact of taxation on revenue generation in nigeria.

In nigeria, property taxation has limited revenue potential firstly because the. Developing countries make heavy use of domestic and foreign borrowing, but this is not an adequate alternative to increasing tax revenues. Property tax it is a tax that applies to developed and undeveloped properties. Taxation in nigeria plus history of taxation in nigeria. This study found that high tax and penalties may discourage investment in new housing and maintenance of existing real properties in nigeria. In achieving the objective of the study, the researcher adopted also primary sources of data to present and analyze the information for the study. Jul 31, 2017 property tax is an untapped goldmine in nigeria. International journal of civil engineering, construction and estate management. These will help you run your business legally in accordance with the tax laws and regulations in nigeria. Capital gains tax act arrangement of sections capital gains tax general section 1. Other taxes and levies vocational training tax companies that employ more than six 6 permanent employees are subject to a tax. The chartered institute of taxation of nigeria chartered institute by act no.

The legal framework and system of taxation in nigeria. Taxes on land and property have both fiscal and nonfiscal effects. Thus their conclusion that tax reforms improved government revenue. Aug 09, 2016 taxation in nigeria and history of taxation in nigeria a tax in nigeria is a compulsory levy imposed by the federal government of nigeria on individuals and corporate entities in respective of return of service expected from the government. The aim of this research is to identify the problems and prospects of real property taxation in nigeria. It is observed that people do develop their properties without a thorough consideration of the interrelationship that exists between the location and property values.

History of taxation in nigeria dates back to even when the name nigeria wasnt coined. Tax policy, tax legislation and tax administration. Taxation in nigeria and history of taxation in nigeria a tax in nigeria is a compulsory levy imposed by the federal government of nigeria on individuals and corporate entities in respective of return of service expected from the government. The treaty is expected to increase investments into nigeria given the key treaty benefit of mitigating and avoiding double taxation between. Land and property taxation on land and infrastructural. The nigeria tax system, like any tax system, is a tripartite structure which comprises of. Under companies income tax act you have to pay companies income tax if you are a resident or nonresident company incorporated in nigeria. A study of federal capital territory and selected states 23 research centre for management and social studies selected states in nigeria and to identify the use of taxation to promote economic growth and development in fct and in some selected states in nigeria. Impact of tax administration on government revenue in a. The objective of this study is to investigate the impact of taxation on economic development of nigeria proxy by the gross domestic product gdp. This also includes any liquidator, receiver, or agent of liquidator or receiver of any company carrying on petroleum operations in nigeria. Considerable importance is attached in the modern world to the concept of property. Nigeria has a number of tax treaties referred to as double taxation agreements with a number of countries, these are designed to ensure that the tax payable in nigeria on the profits of a nigerian company being remitted into the country are reduced by the amount of foreign tax paid abroad and vice versa where an.

Any person or individual, corporate sole, organizations who consumes or buys any taxable product or service will have to pay a tax levy known as value added tax vat in nigeria. The tax base in nigeria since had been on the increase in order to. In nigeria, nobody can dispute the fact that though this taxes are been collected, they are. Tax knowledge and tax compliance determinants in self assessment system in malaysia by mohd rizal palil a thesis submitted to. Property tax, land use act, tax penalty, tax administration. In compiling this publication, member firms of the pkf network have based their summaries on information current on 30 april 2018, while also noting.

The personal income tax pit is the most common tax type in the country. This information is useful for policy makers, implementation and for research purposes. Business or trade only partially carried on or deemed to be carried on in nigeria. The fallen price of crude at the world market has not only led to the devaluation of the naira and inflation but also has plunged the.

In nigeria, taxation has been in existence even before the coming of the colonial men or the british. The country is organized into 9 provinces, 6 singletier metropolitan municipalities, 50 district municipalities, and 228 local councils within the district municipalities. Trust law and the administration of real property in nigeria ibrahim abdulkarim department of private law, faculty of law ahmadu bello university, zaria, nigeria email. Aliyu ahmad aliyu of atbu, nigeria for his inexorable concern and.