Economy

FIRS to Begin Taxing Profits from Bonds, Securities

BY JOHNMARK UKOKO

The Federal Inland Service (FIRS) has declared that it will begin to tax profits accruing from investments in bonds and short-term government securities by companies, which will from henceforth, be categorised as income tax.

This, the agency said, followed expiration of Federal Government’s order in January 2012 that exempted bonds and short-term government securities from income tax for 10 years.

The FIRS stated this in a statement issued by its Chairman, Muhammad Nami and made available to _The Trumpet_ yesterday.

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The statement noted that with the expiration of the order on January 1, 2022, taxpayers are expected to comply with the new order by including such income in their self-assessment returns, tax computation of companies and pay appropriate taxes.

“The taxpaying public should to note that income tax applies to income derived by companies from bonds and short term securities effective from January 2, 2022 except bonds issued by the Federal Government,” he stressed.

Nami, therefore, urged agents of collection of Withholding Taxes (WHT) to deduct interest from WHT and other payments made to any company on account of incomes from bonds and other securities. ‘CBN’s N23b loan to 28 firms shows Buhari’s commitment to economic diversification’

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