So, the land is a chargeable asset as it becomes subject to capital gains tax where it is sold or disposed of in any other manner as long as there is a change in its value.
Capital Gains Tax (CGT) is imposed by the Capital Gains Tax Act (CGTA) Cap C1 LFN 2004 at a rate of 10% when Companies and individuals in Nigeria make gains from the disposal of capital assets.
A smart person once said, “The only thing that hurts more than paying Income Tax, is not having to pay Income Tax”.
After profits from all sources are added into the Tax basket, the exempted profits, deductions allowed and all allowances like Capital Allowances, Rural Investment Allowance, etc are removed from the basket. The remaining profits in the Tax basket – Taxable Income, are then subjected to Companies Income Tax rate of 30% in Nigeria.
TAX SERIES BY ENIOLA – SEASON 3 VOLUNTARY ASSET AND INCOME DECLARATION SCHEME (VAIDS) Episode 1 – Redemption When a Convict on the death row is granted pardon or when an Amputee is given new limbs and can walk again, the only thing that can follow, is overwhelming bliss, a feeling of redemption, a new beginning. That is what VAIDS brings to the table – Redemption, from our Tax iniquities and a new Beginning of Tax compliance. VAIDS is a…