Tax Insight 1- No tax is deductible from or payable (in the hands of the recipient) on dividends paid by a Nigerian company from any of its profits exempted from tax by any provision of the Companies Income Tax Act (CITA), provided that the paying company issues to each of its such shareholders, a certificate stating the amount of dividend to which they are entitled, respectively, and the profits out of which the dividend is paid.
Tax Insight 2- No tax is deductible from or payable (in the hands of the recipient) on dividends paid out/settled by a Nigerian company by issuance of its shares in lieu of cash, provided that the paying company issues to each of its such shareholders, a certificate stating the amount of dividend to which they are entitled, respectively, and the description of the nature of the dividend paid.
Tax Insight 3- No tax is deductible from or payable (in the hands of the recipient) on dividends paid by a Nigerian company from its pioneer status incentive profits, provided that the paying company issues to each of its such shareholders, a certificate stating the amount of dividend to which they are entitled, respectively, and the profits out of which the dividend is paid.
Tax Insight 4- No tax is deductible from or payable (in the hands of the recipient) on dividends paid by a Nigerian petroleum producing company from its petroleum operations profits, provided that the paying company issues to each of its such shareholders, a certificate stating the amount of dividend to which they are entitled, respectively, and the profits out of which the dividend is paid.