In recent times, one Nigerian tax provision closely scrutinized by investors and advisers is section 19 Companies Income Tax Act (CITA) which prescribes “excess dividends tax” on Nigerian companies. It states: “where a dividend is paid out as profit on which no tax is payable due to – (a) no total profits; or (b) total profits which are less than the amount of dividend which is paid, whether or not the recipient of the dividend is a Nigerian company,...the company paying the dividend shall be charged to tax at the rate prescribed...(30%) as if the dividend is the total profits of the company for the year of assessment to which the accounts, out of which the dividend is declared relates.”
Read More
-and-Limited-partnerships-(LPs).jpg)
