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  • PETROLEUM PROFITS TAX (PPT)
  • PETROLEUM PROFITS TAX (PPT)

Description

Date : April 28, 2017
Location : lagos ,nigeria

Applicable tax law- Petroleum Profits Tax Act. Persons subject to the Petroleum Profits Tax:
Companies engaged in petroleum exploration and production operations in Nigeria (up-stream operations)
A person resident in Nigeria employed in the management of the petroleum operations carried on by a non-resident company
The liquidator, receiver, or agent of liquidator or receiver of any company carrying on petroleum operations in Nigeria.

Where to pay the Petroleum Profits Tax:
Companies carrying on petroleum operations in Nigeria make offshore payments to JP Morgan Chase Bank, the bank then advises the Central Bank of Nigeria to enable the bank credit FIRS accordingly.

How to pay the Petroleum Profits Tax
Every company engaged in petroleum operations prepares and submits annual returns as specified by the Petroleum Profits Tax Act within five months of the end of each assessment year. Payment is in two segments beginning with filing of estimated annual return not later than ending of February of each year. Payment for the tax due is then made in twelve monthly installments beginning from March of each year. Where the actual tax liability arising from the annual tax returns exceeds the cumulative estimated tax, a 13th month installment is payable and where the contrary is the case, a refund is due.


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