The amendment to the Capital Gains Tax Act, by the Finance Act 2020 mandates every person who disposed a chargeable asset to compute the Capital Gains Tax, file self-assessment returns and pay the tax computed thereon. This amendment came into effect from 1st January 2021.
Hence, the FIRS has issued a notice on 31st March 2021 to all taxpayers (companies, partnership, executors, trustees, community, families or individuals), tax practitioners and the general public as follows:
- The Capital Gains Tax Act (CGTA) (as amended) mandates every person who disposes a chargeable asset to bi-annually compute the Capital Gains Tax, file self-assessment returns and pay the tax computed, in respect of the chargeable assets disposed, to the relevant tax authority.
- The due date of filling for Capital Gains Tax returns and payment of Capital Gains Tax is the earlier of 30th June and 31st December immediately following the disposal.
- As such, any taxpayers having disposed a chargeable asset is required to compute the Capital Gains Tax, file self-assessment return and pay the tax in respect of the following chargeable assets:
a. Chargeable assets disposed from 1st January in a year to 30th June of that year, not later than 30th June
b. Chargeable assets disposed from 1st July to 31st December each year, not later than 31st December
c. Chargeable assets disposed prior to the coming into effect of Finance Act 2020, not later than 30th June 2021
FIRS cautions that any tax due and unpaid by the due date shall attract interest and penalties as provided in the enabling legislation.
Click here to view the FIRS Publication.
For further clarifications or professional assistance in connection to this subject, please contact Vi-M Professional Solutions on clients@vi-m.com or www.vi-m.com.