TAX ; RELIGIOUS BODIES IN NIGERIA

Following the speculation that the government may start to tax religious bodies, this may be as a result of how the need to pay tax was overwhelmingly voted for at the recently concluded Confab.

Bishop David Oyedepo of Living Faith Word Wide (WINNERS CHAPEL) why reacting to this news said ‘There’s no single government input on this premises, We supply our water, we make our roads, then you say ..........‘Let’s tax them’

Before we condemn the government or criticise Bishop Oyedepo i will like us to discuss Taxation in Nigeria and how it operates, then we’ll know those who are eligible to pay taxes and if we have also not be paying tax.

There are different Taxes payables in Nigeria; they are Income Tax, Personal Income Tax, company income Tax, Value Added Tax, Education Tax, Capital Gains Tax, and Withholding Tax.

PERSONAL INCOME TAX; This is payable by any individual in employment or business, it is the duty of the employer to deduct this tax from the salary of its employees, and for those in private business they are expected to get accessed and pay at the closest tax offices............did i see some business men and women running to tax office lol

COMPANIES INCOME TAX; are payable by all companies registered in Nigeria and all foreign companies that derive its income from Nigeria with the exception to companies engaged in Petroleum operation as defined by the PPTA Petroleum Profit Tax Act.

EDUCATIONAL TAX: This is imposed on all companies registered in Nigeria at the rate of 2% in order to contribute to the educational development in Nigeria

CAPITAL GAIN TAX: This are payable in on yearly basis to a tax payer from the sale, lease and transfer of properties at the rate of 10%

VALUE ADDED TAX; this is a consumption tax levied at each state of consumption to the final consumer, these is that difference you see at the end of receipt from most of these big supermarket and it’s at the flat rate of 5%..............when will they start to tax our pepper& meats

Based on the argument of the delegates members that voted in support of taxing religious bodies, ‘these pastors have schools’ ‘business’ ‘private jets’ and many more. The question to ask is whether they pay tax on their businesses, did they pay tax value added tax when buying their jets.

 

Also we should bear in mind that those who pay tithes in churches have paid their taxes in their various organizations, so on what basis are we taxing these organization and wont this amount to double taxation?

Conclusively, if these religious organisations are duly registered under the PART C of the Companies and Allied Matters Act then they are non profit organisations and are operated either for charitable purposes or to propagate their various religions. Section 23 (c) of the Companies Income Tax these shall be exempted from the tax the profit of any company engaged in ecclesiastical, charitable or educational activities of public character in so far as such profits are not derived from a trade or business carried on by such company.

Pay YOUR TAX TODAY!!!!!!!!!!!

Thank you,

Oyenike Alliyu-Adebiyi LLB(hons)BL