Capital Gains Tax Calculator — Nigeria

How Nigeria Capital Gains Tax Works

Nigeria's capital gains tax system is governed by the Capital Gains Tax Act (CGTA) of 2004. The tax is levied on the gain derived from the disposal of chargeable assets, such as real estate, shares, and securities. The current rate of capital gains tax in Nigeria is 10% of the gain.

How to Use This Calculator

To use this calculator, you need to input the following:

• Cost of acquisition: The original purchase price of the asset.
• Selling price: The price at which the asset was sold.
• Incidental costs: Any costs incurred during the disposal of the asset, such as agent fees or legal fees.

Let's consider an example: Mr. Johnson bought a property in Lagos for ₦50 million in 2010 and sold it for ₦100 million in 2022. His incidental costs were ₦5 million. Using this calculator, he can calculate his capital gain and tax liability.

Key Nigeria Capital Gains Tax Rules

Some important rules to note:

• Capital gains tax is only payable on chargeable assets.
• The tax is calculated on the gain, not the total selling price.
• The CGTA allows for exemptions, such as gains from the disposal of a primary residence.
• The deadline for filing capital gains tax returns in Nigeria is within six months of the end of the tax year (June 30th for individual taxpayers).
• Taxpayers can claim a loss from the disposal of one asset against the gain from the disposal of another asset in the same tax year.

Common Questions

What is the tax year in Nigeria?

The tax year in Nigeria runs from January 1st to December 31st.

Are there any exemptions from capital gains tax?

Yes, there are exemptions, such as gains from the disposal of a primary residence, provided the property has been used as the taxpayer's main residence for at least 12 months.

Can I claim a loss from the disposal of an asset?

Yes, you can claim a loss from the disposal of one asset against the gain from the disposal of another asset in the same tax year.

How do I file my capital gains tax return in Nigeria?

You can file your return online through the Federal Inland Revenue Service (FIRS) portal or manually at the nearest FIRS office.

What are the penalties for late filing of capital gains tax returns?

The penalty for late filing is 10% of the tax payable, plus interest on the tax at the rate of 10% per annum.