₦airaland Forum

ositadima1:
If you reinvest your loot within the same year, you pay nothing — tax is charged only on what you withdraw. I think this will actually work in favor of the NGX rather than against it, as people will think twice before pulling funds out. As for dividends, you already pay tax in the form of withholding tax (WHT).

ositadima1:
If you reinvest your loot within the same year, you pay nothing — tax is charged only on what you withdraw. I think this will actually work in favor of the NGX rather than against it, as people will think twice before pulling funds out. As for dividends, you already pay tax in the form of withholding tax (WHT).

Streetinvestor2:
Traders and jijo people that pull fund out go reduce. Na Agba go hear the thing pass as he buys in November and sell the next yr to pull his loot.The government will collect 25% from the money (gain)
Or he go chop watery beans with male girl fnds..lol

crownprince2017:
The corporate tax and the tax on dividends from each investors dividend, isn't that a double taxation.

ositadima1:
If you reinvest your loot within the same year, you pay nothing — tax is charged only on what you withdraw. I think this will actually work in favor of the NGX rather than against it, as people will think twice before pulling funds out. As for dividends, you already pay tax in the form of withholding tax (WHT).

awesomeJ:
It indeed is.
You tax the profit of a company I co-own, then when a portion of that after tax profit is given to me, you tax it again

mikeapollo:
Okay. I get the dividends side.
I am only concerned with the tax on gains. What happens when I sell and incur losses; any concessions or credits from govt for losses?
I think this could make people sell their huge gains (and cash out) in December, then wait and see how the tax operates in 2026 before they re-enter the market.

What about reinvestment in the fixed income market i.e. selling shares and using proceeds to buy bonds or T bills? Will that be considered in lieu of reinvestment in the NGX?

mikeapollo:
Okay. I get the dividends side.
I am only concerned with the tax on gains. What happens when I sell and incur losses; any concessions or credits from govt for losses?
I think this could make people sell their huge gains (and cash out) in December, then wait and see how the tax operates in 2026 before they re-enter the market.

What about reinvestment in the fixed income market i.e. selling shares and using proceeds to buy bonds or T bills? Will that be considered in lieu of reinvestment in the NGX?

KarlTom:
it is not double taxation in the Financial Sense

The listed company and the investor are two seperate entities...
That's the reason why HNI will always use their personal company(ies) to reduce your tax burden...

ositadima1:
Taxation for Investors and Traders in the Nigerian Stock Market (2026)
As a resident individual in Nigeria, dividends and capital gains from stocks are taxed under the Nigeria Tax Act, 2025. Here’s how it works, and strategies to legally reduce your tax burden.

KarlTom:
it is not double taxation in the Financial Sense

The listed company and the investor are two seperate entities...
That's the reason why HNI will always use their personal company(ies) to reduce your tax burden...

awesomeJ:
Yes.
The reinvest clause they added is the sweet spot.

As long as I'm only selling GTCO to buy buacement then to Berger paints.

Which is largely what I do, I'm good 😊

mikeapollo:
We go remove the ''veil'' and see the human beings behind the companies....
Eeyan lo wa ni di oro t' oro fi s'oro (it is a human being speaking behind the voice of a masquerade)

awesomeJ:
Yes.
The reinvest clause they added is the sweet spot.

As long as I'm only selling GTCO to buy buacement then to Berger paints.

Which is largely what I do, I'm good 😊

KarlTom:
There's a cap of total sales (₦150m)

ositadima1:
if your stock sales exceed N150,000,000 but you reinvest all the proceeds within the same tax year, you will generally not pay any capital gains tax on those gains, according to the Nigeria Tax Act, 2025.

ositadima1:
if your stock sales exceed N150,000,000 but you reinvest all the proceeds within the same tax year, you will generally not pay any capital gains tax on those gains, according to the Nigeria Tax Act, 2025.

KarlTom:
I stand to be corrected but Let me quote your original post:

B. On Capital Gains from Shares
• Threshold Exemption: No tax if BOTH apply in a 12-month period:
o Total sale proceeds < ₦150m, AND
o Chargeable gains < ₦10m.

the key word here is BOTH so exemption only happens WHEN both conditions are met

ositadima1:
Did you just take the part that suited you and leave out the rest of section B? Maybe you’re right, maybe not…

B. On Capital Gains from Shares
• Threshold Exemption: No tax if BOTH apply in a 12-month period:
o Total sale proceeds < ₦150m, AND
o Chargeable gains < ₦10m.

• Reinvestment Rule: Reinvesting sale proceeds (within the same tax year) into Nigerian shares reduces taxable gain. Only the non-reinvested portion is taxable.

• Deduct Costs: Always deduct brokerage fees and other disposal-related expenses.

crownprince2017:
Are shareholders not supposed to be the owners of the business?
Logically, taxing the same profit in the hands of investor looks likes double taxation.

You can tax my business profit and still tax me for pulling it out. Abi there is regulation that the profit must remain in the business?

Forget the names, look at it fundamentally.

KarlTom:
Thank you...

you suddenly 'know' the part that suit me

NettyNelly:
The last Court case halted any further transaction on the deal till October.

How likely is it going to close by August like you mentioned earlier.

KarlTom:
it is not double taxation in the Financial Sense

The listed company and the investor are two seperate entities...
That's the reason why HNI will always use their personal company(ies) to reduce their tax burden...

KarlTom:
That's how it's done worldwide...