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Are Christmas Gifts To Employees Taxable? - Career - Nairaland

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Are Christmas Gifts To Employees Taxable? by saintneo(m): 5:52pm On Dec 20, 2021
Not sure if this can be in politics; however, I know this post will reach more audience. MOD feel free to move to appropriate section.

Accountants, Lawyers, knowledgeable persons on taxes in Nigeria.

If an employer decides to give Christmas gifts to employees, will this gift be taxable? If the gift is a bag of rice how will it be taxed? If the monetary equivalent, will it be taxed?

1 Like

Re: Are Christmas Gifts To Employees Taxable? by Abdul05: 6:00pm On Dec 20, 2021
Is it possible for someone to tax a free gift or good. stingy employer grin grin capital No


You had already been taxed when you bought the goods or gifts...from the seller..


You are not reselling it back but giving it out for free so it can't be taxed grin

20 Likes

Re: Are Christmas Gifts To Employees Taxable? by helinues: 6:02pm On Dec 20, 2021
You said gifts..

What's the taxing for again? No be something from your heart?

2 Likes 1 Share

Re: Are Christmas Gifts To Employees Taxable? by Abdul05: 6:03pm On Dec 20, 2021
helinues:
You said gifts..

What's the taxing for again? No be something from your heart?
thank you bro

1 Like

Re: Are Christmas Gifts To Employees Taxable? by Nobody: 6:06pm On Dec 20, 2021
If you're not selling out to your workers, then it can't be tax.
Re: Are Christmas Gifts To Employees Taxable? by seunmsg(m): 6:16pm On Dec 20, 2021
Such gifts cannot be taxed in the hands of the employees. However, depending on the amount involved, FIRS may disallow it as an unallowable expenses for the purpose of computing CIT.

11 Likes

Re: Are Christmas Gifts To Employees Taxable? by slawormiir: 7:08pm On Dec 20, 2021
Damnnn niggar
Isoright
Re: Are Christmas Gifts To Employees Taxable? by Iamdbull: 7:09pm On Dec 20, 2021
Dbull on this one!!!


The best Christmas gift you can give to your employees is to call me to come and perform at your end of the year party, trust me it will motivate them

1 Like

Re: Are Christmas Gifts To Employees Taxable? by Sonnobax15(m): 7:09pm On Dec 20, 2021
lipsrsealed
As an employer,no do pass yourself.....If you no get money to buy bag of rice for your employees,buy basket of rice make you share for dem...You must not buy chicken for dem undecided

1 Like

Re: Are Christmas Gifts To Employees Taxable? by money121(m): 7:09pm On Dec 20, 2021
Ok
Re: Are Christmas Gifts To Employees Taxable? by DropsMic(m): 7:10pm On Dec 20, 2021
They are TAX DEDUCTIBLE ..

PS: I just dey talk based on wetin i watch for Hollywood. Don't take me serious.
Re: Are Christmas Gifts To Employees Taxable? by arazanbal: 7:10pm On Dec 20, 2021
wahala nor too much for dis country gift again una still dy reason to tax am. make una dy cool down ooo

1 Like

Re: Are Christmas Gifts To Employees Taxable? by AFULA(m): 7:13pm On Dec 20, 2021
Okay
Re: Are Christmas Gifts To Employees Taxable? by inoki247: 7:22pm On Dec 20, 2021
How can you tax what's called gift dem no dey tax freebies now...


Abi gift don dey get Terms nd conditions for Buhari era ni....


It's just like me coming to ur house nd u offer me Semo nd Vegetables with alot of meat shey u go say mak I pay VAT for the Semo nd d Vegetables ni.....

Nobody force u or put u under duress to giv him or her gift which one come b Tax inside gift again....

2 Likes 1 Share

Re: Are Christmas Gifts To Employees Taxable? by iamyemiakins(m): 7:22pm On Dec 20, 2021
Make Oga Seun do giveaway abeg grin
Re: Are Christmas Gifts To Employees Taxable? by okposm: 7:37pm On Dec 20, 2021
saintneo:
Not sure if this can be in politics; however, I know this post will reach more audience. MOD feel free to move to appropriate section.

Accountants, Lawyers, knowledgeable persons on taxes in Nigeria.

If an employer decides to give Christmas gifts to employees, will this gift be taxable? If the gift is a bag of rice how will it be taxed? If the monetary equivalent, will it be taxed?

Those things are taxable if u really want to follow the law under PIT. They are called BIK benefit in kind and 5% is the total value is taxable. But u can just find one expense head and warehouse there. Then under CIT certain conditions have to be met for it to be tax deductible. Such gift must bear the company name on it. Which we know bag of rice will not meet that criteria. So just spread it across some expense heads and don't describe it as bag of rice cos if FIRS gets hold of the GL, it will be disallowed.

13 Likes

Re: Are Christmas Gifts To Employees Taxable? by iyatrustee(f): 7:37pm On Dec 20, 2021
Usually Christmas gift to staff in corporate companies in Nigeria like banks and the organised private sector come in the form of 13th month which is your monthly basic salary and it isn't taxable.

1 Like

Re: Are Christmas Gifts To Employees Taxable? by Focusmind: 7:38pm On Dec 20, 2021
Yes. It is taxable. The new Personal Income Tax Amendment Act 2011 has now brought everything under the tax net. As long as the expenses were incurred on behalf of staff, the monetary equivalent should form part of the staff total emoluments for any relevant year and tax accordingly.

4 Likes

Re: Are Christmas Gifts To Employees Taxable? by chloride6: 7:42pm On Dec 20, 2021
Lmao...

The only thing that isn't taxable is receipted expenses like Lunch etc...

The law gives you 20 plus 1 consolidated relief allowance anything else is taxable.

Even if the company provided a driver for you..

The tax man will calculate a value for that service add it to your salary and you'll pay tax on it..

Lol

2 Likes

Re: Are Christmas Gifts To Employees Taxable? by chloride6: 7:45pm On Dec 20, 2021
okposm:


Those things are taxable if u really want to follow the law under PIT. They are called BIK benefit in kind and 5% is the total value is taxable. But u can just find one expense head and warehouse there. Then under CIT certain conditions have to be met for it to be tax deductible. Such gift must bear the company name on it. Which we know bag of rice will not meet that criteria. So just spread it across some expense heads and don't describe it as bag of rice cos if FIRS gets hold of the GL, it will be disallowed.

I hail ooh ..

Fowler senior
Re: Are Christmas Gifts To Employees Taxable? by Dujardin(m): 7:46pm On Dec 20, 2021
That's BIK and it's taxable. The new PIT law states this specifically, even 13th month salary which used to be untaxed, is now taxable since it's a bonus.

3 Likes

Re: Are Christmas Gifts To Employees Taxable? by Goldentulip2: 7:47pm On Dec 20, 2021
Haha NO
Re: Are Christmas Gifts To Employees Taxable? by talk2hb1(m): 7:51pm On Dec 20, 2021
saintneo:
Not sure if this can be in politics; however, I know this post will reach more audience. MOD feel free to move to appropriate section.

Accountants, Lawyers, knowledgeable persons on taxes in Nigeria.

If an employer decides to give Christmas gifts to employees, will this gift be taxable? If the gift is a bag of rice how will it be taxed? If the monetary equivalent, will it be taxed?
No, file it as employee incentive.
Re: Are Christmas Gifts To Employees Taxable? by wunmi590(m): 7:52pm On Dec 20, 2021


I don't think so....
Re: Are Christmas Gifts To Employees Taxable? by Osyxcel(m): 7:55pm On Dec 20, 2021
okposm:


Those things are taxable if u really want to follow the law under PIT. They are called BIK benefit in kind and 5% is the total value is taxable. But u can just find one expense head and warehouse there. Then under CIT certain conditions have to be met for it to be tax deductible. Such gift must bear the company name on it. Which we know bag of rice will not meet that criteria. So just spread it across some expense heads and don't describe it as bag of rice cos if FIRS gets hold of the GL, it will be disallowed.


The FIRS will not disallow it so far it is an incentive given to the employee. However, a state IRS can treat it as BIK and tax 5% of the value.

1 Like

Re: Are Christmas Gifts To Employees Taxable? by okposm: 8:04pm On Dec 20, 2021
chloride6:


I hail ooh ..

Fowler senior


grin how we go do now. All the money wey we de pay nothing dem de use am do.
Re: Are Christmas Gifts To Employees Taxable? by Drefaithful(m): 8:28pm On Dec 20, 2021
saintneo:
Not sure if this can be in politics; however, I know this post will reach more audience. MOD feel free to move to appropriate section.

Accountants, Lawyers, knowledgeable persons on taxes in Nigeria.

If an employer decides to give Christmas gifts to employees, will this gift be taxable? If the gift is a bag of rice how will it be taxed? If the monetary equivalent, will it be taxed?

In line with Section 51 of Personal Income Tax Act ( PITA as amended )
Benefits in kind is subjected to tax, provided Gift (in cash) can be proved beyond reasonable doubt to be benefit in kind, the tax authority will tax it and is in line with the aforementioned section of PITA

1 Like

Re: Are Christmas Gifts To Employees Taxable? by Ttjj: 8:51pm On Dec 20, 2021
No
Re: Are Christmas Gifts To Employees Taxable? by saintneo(m): 9:05pm On Dec 20, 2021
thanks
okposm:


Those things are taxable if u really want to follow the law under PIT. They are called BIK benefit in kind and 5% is the total value is taxable. But u can just find one expense head and warehouse there. Then under CIT certain conditions have to be met for it to be tax deductible. Such gift must bear the company name on it. Which we know bag of rice will not meet that criteria. So just spread it across some expense heads and don't describe it as bag of rice cos if FIRS gets hold of the GL, it will be disallowed.

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