The Finance Business Partners

Tax Friday Question Company XYZ is on the verge of paying ABC ltd it's service charge for outsourcing services rendered in 2024. What WHT rate should apply? A. 5% B. 10% C. 2% Feel free to share your answers. Do have a great day ahead.

Weekly Anonymous Sharing Today we have an intriguing situation a community member has shared. We look forward to diverse insights and opinion on the issue. Thank you.

The Power of Optimism At some point in your career you might have had the feeling of been discouraged or overwhelmed. We can tell you for sure that it’s natural to have moments of doubt or frustration, but cultivating a positive, optimistic mindset can make all the difference for you. To some great assurance, we can say that been optimistic can help you achieve greater success in your career. Optimism is the belief that good things are possible, and setbacks are temporary and solvable. People who are optimistic tend to be more resilient, creative, and effective problem-solvers. By contrast, pessimistic people may become overwhelmed by challenges and give up too easily, leading to missed opportunities and lower job satisfaction. As professionals, having an optimistic mindset can help you achieve your career goals in several ways. It can give you the motivation and resilience to keep pushing forward despite setbacks or rejections. It helps you see opportunities where others see only obstacles. Going forward, in other for you to become optimistic, try practicing gratitude by focusing on what you have rather than what you lack. When you are also facing challenges, focus on solutions rather than problems, by asking yourself "how can I solve this?" rather than "why is this happening to me?" Finally, in today’s fast-paced and often challenging work environment, it's easy to become discouraged or overwhelmed. However, by cultivating a positive, optimistic mindset, you can overcome obstacles and achieve greater success in your careers. Have a great week ahead.

Tax Friday Question Are initial medical consultation services rendered by a healthcare provider liable for Value-Added Tax (VAT)? Please feel free to share your answers. Do have a great day ahead.

Weekly Anonymous Sharing Today we have an intriguing situation a community member has shared. We look forward to diverse insights and opinion on the issue. Thank you.

Tax Implications of Revenue from Investment Securities Corporate entities, such as banks and other financial institutions, often generate income from various sources, including securities. What is a Security? A "Security" is a financial instrument representing different types of investments, such as stocks, bonds, mutual funds, and derivatives. What Does the Sale of Securities Entail? The sale of securities involves individuals, corporate entities or even government selling financial instruments like stocks, bonds, and mutual funds to potential investors. Corporate entities often sell securities as a strategy to raise capital. These funds can be utilized for expanding operations, repaying debt, or financing the company's strategic initiatives. What Taxes Apply to Revenue of This Nature? 1. VAT Implication: Proceeds from the disposal of securities are not subject to VAT in Nigeria. The VAT Act, under Section 46, defines goods as all forms of tangible property, whether movable or immovable, but excludes land, buildings, money, and securities. 2. CIT Implication: The type of security sold determines whether income tax applies. Interest income earned on FGN (Federal Government of Nigeria) bonds is not liable to income tax. However, other securities, such as corporate bonds, state bonds, and other similar instruments, are taxable. The income tax exemption order, which was granted for ten years from 2012 to 2022, has since expired, meaning that only FGN bonds remain exempt from income tax. 3. Capital Gains Tax (CGT) Implication: The Finance Act 2021 introduced Section 30 of the Capital Gains Tax Act, which taxes gains accruing from the disposal of shares above ₦100 million, provided that the proceeds are not reinvested into the same or another Nigerian company within the same financial year. This means that any gain on the disposal of shares exceeding ₦100 million, if not reinvested within the financial year, will be subject to CGT at a rate of 10%. Finally, we would be uploading our video tax courses on our website. sign up on www.fbpcommunity.org Hope you found this insightful, do have a great day ahead.

Learning from the Best As professionals, continuous improvement and career excellence are goals we all strive for. A powerful way to achieve these is by learning from those who have already succeeded. However, many professionals mistakenly believe that direct mentorship is the only way to learn from the best, overlooking more accessible methods like attending industry events, reading books and articles by thought leaders, engaging in online community discussions such as The Finance Business Partners, or signing up for free courses on our website. Our industry is constantly evolving, making it crucial to stay updated on the latest trends and best practices. Learning from the best not only helps you stay relevant but also opens doors to new opportunities, projects, and deeper industry insights as you expand your network. So, how do you start learning from the best? Begin by identifying the thought leaders and professional communities in your field. Follow them on social media, read their books and articles, attend their events, and engage with their content. Ask questions and participate in discussions. Finally, as a new week begins, don’t forget to sign up at www.fbpcommunity.org for free courses and updates. Wishing you a wonderful week ahead!

Tax Friday Question Bank PHV realized a gain from the disposal of debt securities in the 2023 financial year. Which type of tax applies to this gain? A. Income Tax B. Capital Gains Tax C. Stamp Duty Please feel free to share your answers. Do have a wonderful day ahead.

Learn Without Limits On August 8, 2020, we launched the Finance Business Partners Community to address a significant issue: the gap between academic teachings and real-world applications in finance. We recognized that what is taught within the four walls of academic institutions often does not fully prepare individuals for the practical demands outside those walls. Over the years, we've been dedicated to bridging this gap. We've organized numerous training sessions, maintained daily engagement across our social media platforms, and introduced various programs such as the FBP Accountability Programme. We've also established a physical presence in top tertiary institutions in Nigeria. The big news is that we're taking this a step further. We have launched our website where community members and others can access free practical training through videos and written content, enhancing their knowledge in Finance, Accounting, Tax, Audit, and other related fields. Are you an accountant or finance professional looking to enhance your skills? Or a student wanting to join a professional community? Sign up for our free courses at www.fbpcommunity.org. We offer a variety of free and paid high-quality courses designed specifically for you. Our free courses allow you to study at your own pace, anytime, anywhere. By signing up on our website, you'll have the opportunity to connect with like-minded professionals and start your journey toward professional excellence. Register today and take any of our free courses to begin your path to success. We look forward to welcoming you! George J. MBA, FCA, PMP, PSM, PSPO Abubakar Idris Faith Omodara, ACA Lateefah Oriola,FMVA®

Weekly Anonymous Sharing Today we have an intriguing situation a community member has shared. We look forward to diverse insights and opinion on the issue. Thank you. George J. MBA, FCA, PMP, PSM, PSPO Qudus Adebowale Balogun Adeyemi Afolabi-Smith FCA,MBA,M.IoD,FIMC,FIDR, Bsc(Ed),AAT,ACTI,ACFE,CMC,CIP,Abubakar Idris Faith Omodara, ACAMary Ogungbuji Faith Omodara, ACA