Rates of tax
A - Rate of tax
(b) tax upon that part of the total income which consists of wife's employment income, wife's professional income and wife's self-employment income, other than income arising from fringe benefits, shall be charged for a year of income at the wife's employment income rate, wife's professional income rate, wife's self-employment income rate as the case may be, for that year of income;
(c) tax upon that part of the total income of an individual that comprises the qualifying interest shall be charged for a year of income at the qualifying interest rate of tax for that year of income;
(d) tax upon that part of the total income of a person that comprises the qualifying dividends shall be charged for a year of income at the qualifying dividend rate of tax for that year of income;
(e) tax upon the total income of a person other than an individual shall be charged at the corporation rate for that year of income;
(f) tax upon that part of total income that comprises dividends other than qualifying dividends shall be charged in a year of income at the resident withholding rate in respect of a dividend specified in the Third Schedule.
(g) tax upon the total fringe benefits provided by an employer shall be charged at the resident corporation rate for that year of income.
(h) tax upon gross receipts of a person chargeable to tax under section 12C shall be charged at the resident rate for that year of income.
(i) tax upon the amount or value of the consideration from sale of property or shares of a resident person charged under section 3(2)(g) shall be charged at the rate provided for under paragraph 5 of the Third Schedule Finance Act 2012 Effective 09 January 2013 Deleted by inance Act, 2015 effective 1st Jan 2016
(j) tax upon the capital gains of a person charged under section 3(2)(f) shall be charged at the rate of five fifteen* percent and shall not be subject to further taxation.
(b) the transfer of such investment is made after five years, the applicable rate shall be the rate that was prevailing at the time that the investment was made. Finance Act, 2014 effective 01 January 2015 (Finance Act 2022-wef-01-January-2023*)
(l) the transfer of interest in a person shall be charged as per provisions of the Ninth Schedule. Finance Act, 2015 effective 1st Jan 2016
(m) tax upon the gross winnings payable by bookmakers to punters (players) shall be charged at the resident rate for that year of income Finance Act, 2015 effective 1st Jan 2016 Deleted by Finance Act, 2016 Effective 1st January 2017
(m) winnings. Tax laws (Amendment) Act 2018 Effective 1st July 2018
(n) tax upon the gross turnover of a person whose income is chargeable to tax under section 12D shall be charged at the rate specified in the Third Schedule. (Finance Act 2020- wef-01January2021)
(o) tax upon the gross transaction value of services chargeable to tax under section 12E shall be charged at the rate specified in the Third Schedule (Finance Act 2020- wef-01January2021)
(1A) Deleted by Finance Act, 2014 effective 01 January 2015
Where the total income referred to in paragraph (a) of subsection (1) includes net capital gain, and the individual rates of tax payable on a part of that income exceed thirty-five per cent (which part is in this subsection called "the relevant part") -
(a) the tax payable on the portion of the relevant part which is net capital gain shall, notwithstanding any other provisions of this Act, be at the rate of thirty-five per cent; and
(b) the tax payable on the balance of the relevant part shall be computed by reference to the individual rates of tax above thirty-five per cent that would apply if the income referred to in paragraph (a) of this subsection had been the top slice of income.
"net capital gain" means income chargeable to tax under section 3(2)(f) reduced in accordance with section 15(8);
"top slice of income" means that part of the income which attracts the highest rates of tax;
(b) a royalty or natural resource income; Finance Act, 2014 effective 01 January 2015
(c) a rent. premium or similar consideration for the use or occupation of property; Finance Act, 2014 effective 01 January 2015
(d) a dividend; Finance Act, 2014 effective 01 January 2015
(e) interest; Finance Act, 2014 effective 01 January 2015
(f) a pension or retirement annuity; Finance Act, 2014 effective 01 January 2015
(g) a payment in respect of an appearance at, or performance in any place (whether public or private) for the purpose of entertaining, instructing, taking part in a sporting event or otherwise diverting an audience; or Finance Act, 2014 effective 01 January 2015
(h) a payment in respect of an activity by way of supporting, assisting or arranging an appearance or performance referred to in paragraph (g), Finance Act, 2014 effective 01 January 2015
(i) winnings from betting and gaming; winnings payable by bookmakers to punters (players). Finance Act, 2015 effective 1st Jan 2016, Finance Act, 2016 Effective 1st January 2017
(i) winnings. Tax Laws (Amendment) Act 2018 Effective 1st July 2018
(j) a payment in respect of gains or profits from the business of a ship owner which is chargeable to tax under section 9;
(k) a payment in respect of gains or profits from the business of transmitting messages which is chargeable to tax under Section 9 (2).
(k) the amount or value of the consideration from the sale of property or shares in respect of oil companies, mining companies or mineral prospecting companies. Finance Act 2012 15 June 2012 Finance Act, 2015 effective 1st Jan 2016
(l) gains on transfer of securities listed on any securities exchange approved under the Capital Markets Act. Finance Act, 2015 effective 1st Jan 2016
(m) Deleted Finance Act, 2015 effective 1st Jan 2016
(n) demurrage charges; or Finance Act, 2018 effective 1 st July 2018. Deleted by Finance Act, 2019 effective 7th November 2019
(o) an insurance premium except insurance premium paid for insurance of aircraft. Finance Act, 2018 effective 1 st July 2018. (TaxLAA-No1-2020 wef-25April2020)
(o) insurance or reinsurance premium, except insurance or reinsurance premium paid in respect of aviation insurance; or (TaxLAA-No1-2020 wef-25April2020)
(p) sales promotion, marketing, advertising services, and transportation of goods (excluding air and shipping transport services. (TaxLAA-No1-2020 wef-25April2020)
(q) gains from financial derivatives (Finance Act 2022-wef-01-January-2023)
(1) The tax chargeable on any income specified in this Act shall be at the rate specified in the Third Schedule.
(2) Subject to subsection (1), the transfer of interest in a person shall be charged in accordance with the Ninth Schedule.
(3) In this section “person” does not include a partnership. (TLAA 2024 wef 27th December, 2024 S12)
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