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Nigeria: Business implications of excess dividend tax

Nigeria: Business implications of excess dividend tax

A judgment of Nigeria’s Federal High Court in 2016 sparked some controversy for the way the court applied the excess dividend tax to treat dividends distributed by a taxpayer from retained earnings as its total profits for the relevant years of assessment.


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Tax professionals with the KPMG member firm in Nigeria have analyzed section 19 of the Companies Income Tax Act 2004 (as amended) concerning the excess dividend tax in light of the 2016 case and its implications for businesses.

The KPMG report was published in two parts in the 17 and 18 September 2018 editions of Bloomberg BNA Daily Tax Report: International, and can be accessed on Bloomberg BNA’s website:

  • Business implications of Nigeria's Excess Dividend Tax (Part 1)
  • Business Implications of Nigeria's Excess Dividend Tax (Part 2)


For more information, contact a KPMG tax professional in Nigeria:

Wole Obayomi | +234 1271 8932 |

Chima Azumarah | +234 1271 8955 |

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