Corporate

• Company Tax

In the case of a company that makes profit for the tax year, 35% is charged on the net computed profits as the tax liability. In the case of a company that does not make profits for the tax year and yet submits its audited accounts, 2% minimum income tax is levied on the gross turnover as the tax liability. For any other case including those who do not make profits yet submit non-audited accounts or no accounts at all, then a 3% minimum income tax is levied on the gross turnover as the tax liability.

CAPITAL ALLOWANCES

Although depreciation is a non-allowable deduction with respect to income tax, capital allowances are allowable deductions. An initial allowance is allowable for new and replaced assets once in their lifetime while an annual wear and tear allowance is allowable on an asset each year up to its disposal or end of the assets useful life. The rates and categories of the initial and annual allowances are specified below:-

• Initial Allowances

Buildings, Structures or Works of a permanent nature——10%

Plant, Machinery and Equipment; Office Furniture, Fixtures etc  ——-20%

• Annual (Wear and Tear) Allowances

Buildings, Structures or Works of a permanent nature——– 5%

Motor Vehicles; Buses and Mini-Buses with a sitting capacity of less
than 30 passengers; goods vehicles with a load capacity of less than
7 tones computers and data handling equipment; and construction
equipment and earthmoving equipment—— 40%

Buses with a sitting capacity of 30 or more passengers; goods vehicles
designed to carry or pull loads or more than 7 tones; specialized trucks;

tractors; trailers and trailer-mounted containers; and plant and machinery used in manufacturing, mining or farming operations  —–30%

Vessels, barges, tugs, and similar water transportation equipment;
aircraft; specialized public utility plant; equipment, and machinery;
office furniture, fixtures, and equipment; any depreciable asset not
included in another category——– 20%