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Nigeria's Tax Appeal Tribunal Holds Excess Dividends Tax Applies for Dividends Paid Out of Prior Year's Profits

|Approved Changes|Nigeria
Nigeria

Nigeria's Tax Appeal Tribunal issued a decision on 5 July 2019 concerning whether dividends distributed out of a prior year's post-tax profits are subject to the so-called excess dividends tax when distributed in a later year in which there was no profit declared. The excess dividends tax is provided for in Section 19 of the Companies Income Tax Act, which essentially provides that dividend dis…

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