FIRS To Tax Profits From Bonds, Securities
The Federal Inland Revenue Service (FIRS) has announced that it would tax profits accruing from investments in bonds and short-term government securities by companies which would now be categorised as income tax.
This, it said, followed the expiration of an order by the federal government in January 2012 that exempted bonds and short-term government securities from income tax for a period of 10 years.
A statement signed by the Chairman of FIRS, Muhammad Nami, yesterday, noted that with the expiration of the order on 1st January 2022, taxpayers are expected to comply with the new situation by including such income in their “Self-assessment returns and tax computation of companies and paying appropriate taxes.
“The taxpaying public is hereby invited to note that income tax applies to income derived by companies from bonds and short-term securities effective from 2nd January 2022, except for Bonds issued by the federal government.”
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 income from bonds and other securities.