Finance (No.2) Act 2023 (2024)

FAQs

What is the new tax reform for 2023? ›

With inflation at 7.1%, 2023 witnessed the most substantial adjustment to tax brackets in decades. Generally, wider tax bracket thresholds will reduce tax liability for most taxpayers. However, the most pronounced impact will be felt by those in the higher 22% through 37% brackets.

Based on the Finance Act 2023 and TETF Act 2011, tertiary education tax is payable for a company registered in Nigeria at the rate of 3% of the assessable profit (Old rate – 2.5%). It is important to note that the Federal Government recently increased the TET rate from 2% to 2.5% in the Finance Act 2021.

Pre-operation levy abolished

The Pre-operation levy of NGN 25,000 in the first year and NGN 20,000 in subsequent years before issue of a Tax Clearance Certificate (TCC) to companies who are yet to commence operation has been abolished. Such companies can now apply to the FIRS for a TCC at no cost to them.

The Finance Bill is a part of Union Budget of India, which specify all legal amendments required for the changes in taxation proposed by the Finance Minister. The lower house of the Parliament Lok Sabha needs to pass Finance Bill, as a Money Bill, which becomes the Finance Act after the approval of Lok Sabha.

Yes, Social Security is taxed federally after the age of 70. If you get a Social Security check, it will always be part of your taxable income, regardless of your age. There is some variation at the state level, though, so make sure to check the laws for the state where you live.

For tax year 2023, the additional standard deduction amounts for taxpayers who are 65 and older or blind are: $1,850 for single or head of household.

Speaking at the event which held in Abuja, Nami said that despite the 41 million tax payers, Nigeria still earned lower than what countries with similar indices across Africa, generate from personal income taxes (PIT).

Tertiary education tax is imposed on every Nigerian company at the rate of 3% of the assessable profit for each year of assessment. The tax is payable within two months of an assessment notice from the FIRS. In practice, many companies pay the tax on a self-assessment basis along with their CIT.

This implies that schools, educational institutions and other companies that are engaged in educational activities are required to pay income tax on their profits.

Stamp duties between a group of individuals and companies are collectible by the Federal Inland Revenue Service (FIRS) while the revenue bodies of states are charged with the power of collecting stamp duties in respect of transactions between individuals.

Who is to pay stamp duty in Nigeria? ›

The burden of payment of stamp duties whether fixed or ad-valorem is that of the beneficiaries of a contract, or Money Deposits Banks customers who transfer an amount of N10,000 and above from his account to another customer's account.

Specifically, the major distinction between income taxes and levies is that the former is based strictly on taxable profit while the latter is payable without regard to taxable profit.

Money is a part of finance. Finance is a broader concept that includes the management, creation, and study of money. The money includes cash and cash equivalents that are readily available for use. Finance includes personal, public, and corporate finance.

Parliament can increase a tax.

a document signed by a bank agreeing to pay the amount that is named on it: Bank bills are traded in the money markets in the same way as trade bills, except that the rate of discount is smaller. especially US. → banknote.

How much is the standard deduction for 2023? Note: If you are at least 65 years old or blind, you can claim an additional 2023 standard deduction of $1,850 (also $1,850 if using the single or head of household filing status).

For tax year 2024, the standard deduction for married couples filing jointly rises to $29,200, an increase of $1,500 from 2023. For single taxpayers, the standard deduction rose to $14,600, a $750 increase from the previous year.

Changes to the tax code mean your refund could be noticeably bigger. The deadline for most Americans to file their federal tax return has passed. And while the IRS is still processing paperwork, refunds for tax year 2023 are tracking considerably higher than they were in 2022.

Expired pandemic-era expansions for deductions and credits could result in a smaller tax refund this tax season. On the other hand, higher income thresholds for higher tax rates could lower your tax bill—or raise your refund. Changes in your personal situation might also affect how you fill out your tax return.