0 UNDERSTANDING NIGERIAN PERSONAL INCOME TAX

Many Nigerian especially those in the real sectors have been paying their taxes regularly but most cannot state how their employers arrive at those strange figures. The essence of this post is to help you understand the recent amendment in the personal income tax law of Nigeria as at 14 June 2011.

Key changes

·       Introduction of a consolidated tax free allowance of N200,000 or 1% of gross income, whichever is higher, plus 20% of the gross income.

NB: Gross emolument (or income) is defined to include benefits in kind, gratuities, superannuation and any other incomes derived solely by reason of employment.

·       Principal place of residence redefined to include places where branch offices and operational site of companies are situated.

.    Benefit-In-Kind (B.I.K) may be defined as those benefits or perquisites that accrue to a person by reason of the office and/or position he/she occupies. Benefits in kind include such benefits as official car, official accommodation, cooks, gardeners, security etc

The absence of a unique identifier in the Nigerian banking industry has been a major challenge inhibiting the effectiveness of the Know Your Customer (KYC) principle, with negative consequences on the growth of credit cards and other credit-related products.

To complement the existing means of identification of customers, which include: the driver’s license; the International Passport; the National Identity Card; and the Permanent Voter’s Card; the CBN, in collaboration with the Bankers’ Committee on February 14, 2014, launched a centralized biometric identification system for the banking industry, tagged Bank verification Number (BVN).

The Bank Verification Number (BVN) project is an initiative aimed at protecting bank customers and further strengthening the Nigerian banking system. The Bank introduced BVN to all banks’ customers to address the absence of unique identifier across the Nigerian Banking Industry. The BVN is a number that enables a bank customer to have a single identity in the banking system. The full implementation was expected to enhance the effectiveness of KYC requirement, the safety and reliability of the payments system

0 CBN ADJUSTS EXCHANGE RATE SLIGHTLY

The Central Bank of Nigeria on made a slight adjustment to its naira-dollar exchange rate peg, 

The bank adjusted the rate at which it sold the United States dollar from N197 to N196.95,Reuters reports.

Prior to This action, the rate had been oscillating between N197 and N199 for a few months.

The naira had traded on thin volumes at 198.95 to the dollar on the interbank market on, before two large sales totalling $36.4m were done at N196.95 towards the close of the forex market, foreign exchange dealers said.

0 1st QUARTER EARNINGS FROM TAXES FALLS TO N756.7 BILLION BELOW TARGET

A total sum of N756.7bn was earned by the country from taxes in the first three months of this year, figures obtained from the Federal Inland Revenue Service have revealed.

The tax income figures for the first quarter was prepared by the Planning, Reporting and Statistics Department of the FIRS and were obtained by our correspondent on Thursday.

The document stated that the N756.7bn was N264.8bn lower than the 2014 quarterly target of N1.02tn, which was set by the Federal Government.

A breakdown of the N756.7bn showed that N368.59bn, representing 48.71 per cent, was generated through Petroleum Profit Tax, while the balance of N388.11bn, representing 51.29 per cent, was earned from non-oil taxes.

0 BEST BANKS IN NIGERIA

Gone were the days when Nigerian
banks were just square/rectangular
boxes where you go to endure the
tyranny of the dreadful queue and
long downtime before you can
withdraw or deposit money. These
days, banks are able to exude an air
of magnificence and royal elegance
with their architectural edifices. The
stately buildings in turn make put
people in awe of the bank and keep
them rest assured that the bank is
the best place to keep their money.
But care should be taken here, it is
not the architectural masterpiece
that makes the bank great but the
board of management and method of
service delivery.

0 AKINWUMI ADESINA BECOME 8TH PRESIDENT OF AFRICAN DEVELOPMENT BANK

Akinwumi Adesina of Nigeria has been elected as
the 8th President of the African Development Bank
(AfDB).
Adesina was the Minister of Agriculture and
Rural Development in Nigeria.

0 JONATHAN APPOINTS MR PETER OBI AS CHAIRMAN SEC

President Goodluck Jonathan has appointed the former Governor of Anambra State, Mr Peter Obi, as the new Chairman of the Securities and Exchange Commission.