₦airaland Forum

zendi:
Are you sure of this one ?

Maybe look it up and see, then share what you find 😁

Agbalowomeri:
Walahi if na state go collect am, na only Lagos people go worry

It's certainly states.

The only possibility is if they develop a complex/sophisticated software centrally that states can then plug into to drive compliance.
Otherwise, most states won't bother, same way they never bothered implementing the 10% CGT that had been in the Finance Acts since 2019 or so.


Good thing all my jobs are remote,
I could just easily relocate to my village 😁

pluto09:
I am not sure this is totally correct.
The CGT for an individual will be treated as PIT which belongs to the state of residence. However,I want to believe the new NRS can collect it on behalf of the state if my understanding of the new tax law is correct.

NRS will only collect funds that belong to the FG or the federation (All 3tiers)

PIT belongs exclusively to states and so isn't collectible by NRS

Agbalowomeri:
Looks like we overrated the potential impact

Abi.
But better than underrating it make e come shock us.

Another thing about this CGT is that it's not even going to be collected by FIRS(NRS) if you're in the market as an individual (not a company)


So one can also move to states that are less likely to have the resources to implement.

Even LIRS might yet restrict its implementation to just HNIs.

jonnysessy:
This Taiwo Oyedele go explain tire.

Because he's the only one that understands the law??

Even the law makers who passed it are lost??
😁😁😁

Thanks to that guy who made this joke earlier.

Many of us got good laugh.

Locotrader:
Most stocks closed neutral today.
We await next week bull.
One sector must trigger the bull.
I am suspecting the insurance sector.
I was able to increase holdings today in Japaul.
Japaul is set to lead with some insurance stocks any moment from now.

Yes, the market is set to start breaking new highs. We don't yet know if this CGT issue will cause panic sales though. I hope it doesn't.

Streetinvestor2:
The effect of single stock...Dangote Cement.
That is the magic of ASI I don't understand till now..lol

It will even get "worse" when the refinery is listed. If it lists before NNPCL, It will be worth 35-50% of the market, depending on the valuation they push, as well as whether other businesses like the fertilizer push the existing market cap to around $70bn pre listing.

Anyday DANGREFINERY close lower, just forget it, market will be red no matter what other stocks gain 😁😁😁

Meanwhile, today, the Market fully recovered from its dip to 138k.

ASI now at new ATH!

We await 150k.

NGN closed at 1455.17. this 1450 is looking stubborn. We should breach it next week, God helping.

#NGN at 1400, ASI at 150k

Mpeace:
11billion Naira entered dang cement today. Pple no dey fear CGT again

Maybe the seller sold off for fear of CGT??

The market always needs the fearful and greedy on opposite sides of a deal.

KarlTom:
PRESCO that will be around ₦1700 by December...

True, People like Loco need lots of oil to fry their rams.

mikeapollo:
Theoretically speaking, you are correct.
But there is no guarantee that one would be able to buy back in 2026 the exact units that was sold in 2025. So, there could still be significant ''losses'' in terms of volume.
And if everybody is to sell off in 2025, it could definitely lead to crash in stock prices and potential losses even before you buy back in 2026.
This is part of uncertainties and issues that would mess up the market if this govt does not stop the CGT nonsense.

There's an option to expect that they stop it(which we all want)
But there are also ways to minimize your tax burden, so it'll be good for people to learn and apply those.

Locotrader:
Bull is insight generally by next week

Amen!

ASI on the verge of reclaiming its 52-week high!

150K now in sight!

stokfrick:
For those saying sell in 2025 and repurchase in 2026, would that be necessary?
I think the best is
sell in 2025, then reinvest in same 2025 and hold till 2026-- no tax for 2025
New cost price is price of the stock as at January 1, 2026.
Sell in 2026, then reinvest all proceeds in 2026, then sell at very little or no profit. So, no profit was made in 2026 assuming no further purchases are made.
So tax avoided.
Make Una check am, abi e no correct?

Both are correct.

The point is to exit your low cost position and rebase it to current price levels.
As long as you exit in 2025, you can re enter either in 2025 or 2026, both work, your PRESCO cost price will be taken as 1400 instead of 80.

Payunsin:
I think I get your point it is better I book all my profits in 2025 and buy back so that the 2026 tax will reflect on new purchases

Exactly!

Locotrader:
Now I am getting this.
Govt will tax 25% only on gains starting from N10m.
How will govt know my profit?
Does it mean stockbrokers will expose our gains to the govt?

I hope govt will also pay me 25% when I loose up to N10m in a trade?

You tell them your purchase price.

They can verify via your brokers or via CSCS.

Which is why those holding low purchase price are better off rebasing it as I've suggested.

If you lose N10m in a trade, you can remove it from any gains you make from other trades up to the next 5 years (I think).

Locotrader:
Let me ask you this.
What amount is qualified for this 25% tax by govt?

Gains from N10m upwards will be taxed at rates ranging from 15% - 25%.

But you can sell and repurchase to rebase your cost price, and thus minimize your TAXABLE gains.

Agbalowomeri:
Why does he need to repurchase next year at 22? Nobody is collecting any tax from him in 2025

You're right, repurchasing as I've put it in that example is completely redundant (actually sub optimal).

But I was talking from the perspective of someone who doesn't want to leave the market.

The core point is: if you lock in your gains in 2025: any new tax estimate would be based on your new purchase price in 2026 if you remain in the market. So that really helps everyone with low purchase price who are not ready to exit their positions yet.

Payunsin:
But if I will move it , it’s better that I sell off this year and buyback so as to reduce the profit margin

If you have 10m units of HONYFLOUR that you bought at N4 average, and you sell in 2026 at say N22 average(net of fees)

The law recognizes your profit as N180m and you'll pay c. 40m as PIT if you withdraw the entire sales proceeds.

However, if you sell now at N22 (lock in your 180m profits)


Then repurchase at N22 in 2026 and sell off at N22.

You won't pay any taxes to withdraw your entire proceeds.

You'll just pay about 2-3% in fees (from which the government might still get taxes)


It you use a broker with low fees, it'll be closer to 2%

KarlTom:
You're confusing turnover and profit wrt Corporate entities.

₦200m turnover will definitely not translate to ₦60m tax...

She did infact referred to gains not turnover

Namaster:
One of the major goals of the NTA 2025 is to harmonise several taxes.

For the purposes of taxation, the NTA 2025 treats CGT EXACTLY like Income Tax.

So if an unemployed individual makes profits of #200M in Capital Gains on the NSE, he'll be taxed like someone who works a high-paying job and earns a salary of #200M.

First 800k would be taxed at 0%
Next #2.2M taxed at 15%
Next #9M taxed at 18%
Next #13M taxed at 21%
Next #25M taxed at 23%

Remaining #150M would be taxed at 25%

Instead of getting #20M, the government would get #47.93M from YOUR money.

That's MORE than a 100% increase in Tax Liability!

Yet Oyedele is out there CAMPAIGNING for the New Reforms and touting its "simplicity" as if people are happy to take simplicity in exchange for being FLEECED to death.

It's even WORSE for Corporate entities.

Instead of paying #20M based on the Old Laws, they'd pay #60M according to the NTA 2025. Or #50M if Tinubu eventually reduces CIT to 25%.

People will eventually RUN away from NGX.

faoogoke:
Mr Oyedele is the only one who understands the new Tax law, and he will explain tire.

😁😁😁😁😁😁

innovestor:
Like i wrote in my submission, my example was just to clarify between % of salary and % of all pay which was not clarified in the original post.

Please send me a DM of someone you know in the O&G industry (new entrant earning 16m as compared with Dangote new entrant of 400k). I will like to be his/her friend, e get why. Abeg no vex.

You used irrelevant examples

Cos I only raised the point about the 40x disparity mentioned, and you came with an example of 2.5x

You missed the point.

For entry level folks earning well, try LinkedIn and send connection requests.

By the way, I didn't say anyone earns 16m, I only said if someone at Dangote earns 400k and we're to believe the 40x disparity, then their IOC counterparts earn 16m.

That's what maths says not me.

Seun:
testing to see if the file upload feature now works.

USD is no longer 1600!
USD is no longer 1600!
USD is no longer 1600!

SEPLAT at 5917.
Finally!

145k loading

IYGEAL:
I mean, it's more convenient to leave it like that. If investors like make them no check for public holidays. If NGX says "no access", then everyone should get it by fire by force.

The developers tried though. The issue with public holidays can be overlooked, whether or not they implemented it.

Yes sir.

Except if we have data broker APIs that they can integrate into to automate this. I think players like Mono should consider adding such services.

innovestor:
He said the part of that constitutes the contribution to the check off dues, not the total salaries. I'd give an example so you understand that they dont mean the same thing (not real figures):
1. Dangote Worker: Salary - 80k, Cumulative benefit - 140k (check off dues = 20% of salary = 16k)
2. O&G worker: Salary - 200k, Cumulative benefit - 70k (check off dues =20% of salary = 40k)

In this example, check of dues of one O&G worker is more than twice of Dangote Worker. However total pay of Dangote worker is 220k while O&G worker is 270k (a mere 50k difference)

Your example is valid. Only that you used 2.5x and assumed Dangote pays 2x in benefits. Both of these are massively wrong and flawed


The reality according to the man is that a pengassan member in Dangote pays 10k in checkoff dues, and his colleague in an IOC pays 400k meaning if checkoff dues are 2.5%,
The guy in Dangote has a 400k salary while his colleague has N16m


For benefits, the reality is that the IOCs are more likely to even pay much higher benefits than Dangote.

For instance, back in the days, if your dad worked in Exxon Mobil, there were special world class schools built for you kids to attend.

You think Dangote offers that?

The only thing that can make your points valid is if that ratio isn't actually as bad as 40x otherwise all this numbers you're writing are theories born out of illusion.

Digitron:
No, not senior staff but Entry level engineers

The SS in penga SS an doesn't it mean senior staff?

Not all entry level are junior staff na.

If they're pengassan members, then they're senior staff, entry level or not.

Except if pengassan is confused about their scope 😁😁

Streetinvestor2:
U keep sounding very funny because u work in oil and gas industry. What is the hazard working in dangota refinery. Is the refinery going to explod.That is my problem with people like u.U like to feel ur profesion is so special than others. U think those security mean facing boko haram everyday jobs are not more hazardous than someone who is operating/monitoring machines.

I made my last two posts, only to come later read that you said the exact same things already.

Don't mind him.
Special skills and you're collecting 400k salary.

For on-site role o.

handsomebolanle:
It’s alarming in the lever of Irrational thinking.
Comparing a security with a skilled worker and the basis of comparison narrowed to hazards. lol.
I Will ordinary ignore some post but mehhn… There needs to be a correction.

What makes the security less valuable?

I think you're coming again with these bloating of your skills.

I know a colleague from college who got into NNPC or so despite the fact that his results occupied space while we were in school 😁😁😁


P.S occupy space means the said student had lots of outstanding courses. The way results were printed at the time, if you didn't have any outstanding courses, your results took just one line, but some students would take 5 or more lines, cos of the bogus list of courses they'd failed.

freeman67:
Wow..!! See flexing for some jobs in the private sector ooo. Apart from maybe FIRS, CBN and NNPC. Majority of those working in Government establishments can not come close to all these figures I am seeing here at entry or even mid level self ooo. If you talk now them go say hazards but some people in the security sector being exposed to hazardous assignments and even die daily from them but if you see people amongst them earning up to 700k then they are the Ogas at the top on Level 15-16 about 20 year and above done on that Job already.

No wonder things no gree balance for this country.

Which hazard can be more than being a soldier in theatres of war in the north east?

Yet how much are those front line soldiers paid?

200k or less?

Yet some politician without conscience will steal billions, and worse stash it completely idly in a foreign land.

Abi they'll be willing to negotiate paying billions to terrorists.

In my opinion, any soldier who goes to the theatre of war in any given month should never be paid less than 1m.

Others who weren't deployed can be at 200k or so.

So let their salaries be 200k, but every time they go to a battle field, they should get at least 500k in battle hazard allowance.


But like you said, life nor balance.

Cos all these oil workers shouting hazards, which hazard is an accountant in Chevron office in Lekki facing, yet they pocket 12m in regular salaries, excluding bonuses.

IYGEAL:
I suppose developers of iTrade which Morgan Capital uses, uses this logic, because on public holidays the market is "open".

Some times, the problem might be with the users and not the developers.

What I imagine is that this holiday case would require a privileged user to manually set a day or days as public holidays.

The engineers might have built in that functionality, but what if the privileged users fail to use it.