Property Law Taxation Flashcards
What are the applicable laws in property law taxation?
The applicable laws are: Land Use Act, Stamp Duties Act, Capital Gains Tax Act, Personal Income Tax Act (PITA), and Companies Income Tax Act (CITA).
What taxes are payable in property transactions in Nigeria?
The taxes payable include: Capital Gains Tax, Stamp Duties, Personal Income Tax, Companies Income Tax, Consent Fee, Registration Fees, Value Added Tax, Tenement Rates, and Ground Rents.
Who pays Capital Gains Tax in property transactions?
Capital Gains Tax is payable by the vendor upon the sale of land.
Who pays Stamp Duties in property transactions?
Stamp Duties are payable by the purchaser, assignee, mortgagee, or lessee.
What is Capital Gains Tax (CGT)?
CGT is a levy charged on the gains accruing upon the disposal of assets as provided under the Capital Gains Tax Act.
What is the rate of Capital Gains Tax?
The rate of Capital Gains Tax is 10%.
Who is liable to pay Capital Gains Tax?
Liable parties include companies, partnerships, individuals, and personal representatives.
What are allowable deductions for Capital Gains Tax?
Allowable deductions include expenses incurred for acquisition, development, and disposal of property, among others.
What are exceptions to allowable deductions for Capital Gains Tax?
Exceptions include costs of disputing taxable portions and direct labor put into property improvement.
How is Capital Gains Tax calculated?
CGT = 10% of (Total Gain - Total Allowable Income).
What are Stamp Duties?
Stamp Duties are taxes imposed on legal documents relating to land under the Stamp Duties Act.
What is Personal Income Tax?
Personal Income Tax is tax paid on profits of an income, not on capital assets.
What are Tenement Rates?
Tenement Rates are charges imposed on houses and buildings within a state.
What are miscellaneous charges and fees in property transfers?
Miscellaneous charges include Ground Rent, Consent Fee, Registration Fee, and Value Added Tax (VAT).
What are the implications of failure to pay tax?
Implications include criminal sanctions, property seizure, and refusal to register documents.
