₦airaland Forum

awesomeJ:
For whatever reasons NGX didn't stream the session with Mr Taiwo yesterday.

However, I have good news:

Straight from the official gazette:


1. Our loots are never taxable as long as we reinvest, only the univested portions are chargeable gains.
That's the part relevant to me 😁😁😁


2. The 150m and N10m gains thresholds are there too.

If you got a loan of N100 million to buy shares and then sold the shares within a year from N200 million.

Then used N130 million to liquidate the loan, thereby making a profit of N70 million.

If you reinvested N65 million to buy more shares and then cashed out N5 million, you are not going to pay CGT

emmanuelewumi:
If you got a loan of N100 million to buy shares and then sold the shares within a year from N200 million.

Then used N130 million to liquidate the loan, thereby making a profit of N70 million.

If you reinvested N65 million to buy more shares and then cashed out N5 million, you are not going to pay CGT

I think so.
The only issue is that the sales proceeds are N200m and your profits are N70m both of these violate clause 1.

If you choose to now settle for clause 2, you would pay tax on the N5m .
First 800k -> #0
Next 2.2m at 15% = 330k
Last 2m at 18% = 360k

Total taxes due = 690k
Actual profit = N70m.

Effective tax rate = 690k ÷ (70m) × 100% = 0.985% (less than 1%)

Showing another classic example of how the rich pay a significantly lower effective tax rate than the middle class.


Much better than the 25% folks here have been fearing 😁😁😁

What if you didn't reinvest the N65m, that would be a different story.

awesomeJ:
I think so.
The only issue is that the sales proceeds are N200m and your profits are N70m both of these violate clause 1.

If you choose to now settle for clause 2, you would pay tax on the N5m .
First 800k -> #0
Next 2.2m at 15% = 330k
Last 2m at 18% = 360k

Total taxes due = 690k
Actual profit = N70m.

Effective tax rate = 690k ÷ (70m) × 100% = 0.985% (less than 1%)

Showing another classic example of how the rich pay a significantly lower effective tax rate than the middle class.


Much better than the 25% folks here have been fearing 😁😁😁

What if you didn't reinvest the N65m, that would be a different story.

I thought one would pay CGT if the profit cashed out was N10 million and above

emmanuelewumi:
I thought one would pay CGT if the profit cashed out was N10 million and above

I don't think so sir.
But maybe there are lawyers in the house that can clarify.

Based on the statements of the law, the N10m clause applies to the overall profit not the just portion cashed.

But your strategy already reduces the tax burden quite significantly. (Less than 1%)

awesomeJ:
I don't think so sir.
But maybe there are lawyers in the house that can clarify.

Based on the statements of the law, the N10m clause applies to the overall profit not the just portion cashed.

But your strategy already reduces the tax burden quite significantly. (Less than 1%)

My question is

At what point will government tax an investor? Will you be taxed immediately you banked the cash or they will wait for you to submit your tax returns.

crownprince2017:
My question is

At what point will government tax an investor? Will you be taxed immediately you banked the cash or they will wait for you to submit your tax returns.

From what I heard from Mr Taiwo a while back on Channels TV:
they will wait for you to submit your tax returns

Has anybody recently been able to generate a tax id through the jtb website?

crownprince2017:
My question is

At what point will government tax an investor? Will you be taxed immediately you banked the cash or they will wait for you to submit your tax returns.

They will work wilth your Stockbrokers, that is why you have to update your Stockbroker with your TIN

awesomeJ:
From what I heard from Mr Taiwo a while back on Channels TV:
they will wait for you to submit your tax returns

Money that would have been spent.

It is better for the investor to have been informed about his CGT liability if any immediately after the transaction

DEEP

emmanuelewumi:
If you got a loan of N100 million to buy shares and then sold the shares within a year from N200 million.

Then used N130 million to liquidate the loan, thereby making a profit of N70 million.

If you reinvested N65 million to buy more shares and then cashed out N5 million, you are not going to pay CGT

crownprince2017:
My question is

At what point will government tax an investor? Will you be taxed immediately you banked the cash or they will wait for you to submit your tax returns.

It's obvious they will wait for you to return it since the time interval to pay ur CGT tax gains is 12 calender months if 10m and above.

Also if one makes a net loss within a yr(loss exceed gains like say -7million by Dec 2026), no CGT is paid for that year 2026.
However if one makes about 15m CGT gain the following year by December 2027, you net loss by Dec 2026 will be debited from your Net Gain of 15m by Dec 2027.
(15m-7m=8m)
You have a net Gain of 8m and you won't pay tax CGT for 2027 calender year as far as you can prove it when filing your tax returns..

emmanuelewumi:
Money that would have been spent.

It is better for the investor to have been informed about his CGT liability if any immediately after the transaction

Your submission is what is reflected in the old finance law I suppose.
Each Gain on every NGX transaction was treated in isolation and taxed on CGT separately.

The new law treats your NET-GAIN for a calender year (12months period) as CGT taxable if 10m and above or 150m and above turnover for a calender yr.

What the Govt can do is to give a timeline for individual filings to avoid penalties.

brotherly:
Capital Gains Tax liability is triggered when an investor's annual portfolio turnover surpasses ₦150 million, generating a net gain in excess of ₦10 million. The tax is assessed on the aggregate net gain of the entire portfolio, rather than on the gains from individual securities.

Yes. Exactly. This butresses the interpretation from my understanding.

GeneralDae:
So I interpret this to mean that first your portfolio must cross 150 million, and then the aggregate net gain must be in excess of 10 million. Meaning both conditions must be true for me to be taxable if I’m interpreting it correctly.

No.. I suppose If Each criteria is met in isolation, you will pay CGT tax on either
1)150m and above
2) 10m Gain and above.

Anything less, you probably pay PIT tax on your Net gains alone(from your capital of less than 150million) within a 12month period.

emmanuelewumi:
If you got a loan of N100 million to buy shares and then sold the shares within a year from N200 million.

Then used N130 million to liquidate the loan, thereby making a profit of N70 million.

If you reinvested N65 million to buy more shares and then cashed out N5 million, you are not going to pay CGT

You will pay CGT on the N5 million.
The N70 million gain has breached the second condition and it does not matter the financing method of the initial principal.
So a CGT of N500k will apply.

As for the N65K million reinvested, if you do not file for relief with the FIRS, you will be asked to pay CGT on it. They will turn a blind eye to whether you reinvested it. You have to file for relief otherwise, they will come for you.

chimex38:
Also if one makes a net loss within a yr(loss exceed gains like say -7million by Dec 2026), no CGT is paid for that year 2026.
However if one makes about 15m CGT gain the following year by December 2027, you net loss by Dec 2026 will be debited from your Net Gain of 15m by Dec 2027.
(15m-7m=8m)
You have a net Gain of 8m and you won't pay tax CGT for 2027 calender year as far as you can prove it when filing your tax returns..

Oh was this actually provided for? That's the only sensible thing to do

chimex38:
Your submission is what is reflected in the old finance law I suppose.
Each Gain on every NGX transaction was treated in isolation and taxed on CGT separately.

The new law treats your NET-GAIN for a calender year (12months period) as CGT taxable if 10m and above or 150m and above turnover for a calender yr.

What the Govt can do is to give a timeline for individual filings to avoid penalties.

What if your shares owned predates the law and you sell say in five years?

chimex38:
No.. I suppose If Each criteria is met in isolation, you will pay CGT tax on either
1)150m and above
2) 10m Gain and above.

Anything less, you probably pay PIT tax on your Net gains alone(from your capital of less than 150million) within a 12month period.

Very true. If either condition is met, there will be CGT.

If a total sale of N151 million is made and the gain is N2 million, there will be CGT the N2 million.

If N100 million sales is made and gain is N11 million, there will be CGT on the N11 million.

If N149 million sales I made and the gain is N9.9 million, there won't be CGT as none of the conditions is breached.

If you reinvested the proceed within the same calendar year, you won't pay CGT provided you file for relief with the FIRS

Agbalowomeri:
What if your shares owned predates the law and you sell say in five years?

They will always look at a fiscal year. Old things have passed away and behold all things have become new

Let's be clear about something.
Any gain on stock bought without selling is not a gain until it's sold and any loss is not a loss until sold. Anywhere in the world.

Get knowledge.

You will only be taxed on any stock you sold and make gains

As far as the video goes, 25% is only applicable to one billion

If you're avoiding tax
The best way to go about it is to make sure you're more careful with your investment strategy moving forward and make sure you don't sell above 150m in a year and don't make more than 10m gain too.


But come to think of it if you make 800m gain in a year 25% of it is still 200m and you go home with 600m. To me it isn't bad.
It's still better compare to locking your self to 10m a year

The question now is that do you want to make a
Profit of 10m and pay no tax, get satisfied, go home with it and enjoy and keep coming back yoy for 10m while watching your pairs gaining 1billion yoy and pocketing 750m yoy and giving government 250m yoy without the greed.

You decide

The greedy don't make money in the capital market

Keep your greed and keep investing

You need to upgrade is guess and get used to it

unite4real:
They will always look at a fiscal year. Old things have passed away and behold all things have become new

This is not true cos the gains will be locked in at your brokers from the point you bought up until you sold copied and sent to tax office.

No way out bro

You are better off selling out all the stocks in which you make good gains this year hold your cash in your brokerage account and patiently taking positions in stock that will really do good numbers to cover for your tax levels

We just need to get used to it

I think moving forward is the best time to position in
japaul
Oando
Ellah

For long term.

Lolz!!!

unite4real:
Very true. If either condition is met, there will be CGT.

If a total sale of N151 million is made and the gain is N2 million, there will be CGT the N2 million.

If N100 million sales is made and gain is N11 million, there will be CGT on the N11 million.

If N149 million sales I made and the gain is N9.9 million, there won't be CGT as none of the conditions is breached.

If you reinvested the proceed within the same calendar year, you won't pay CGT provided you file for relief with the FIRS

Will there be a CGT if you made a profit of N20 million on a stock held for 5 years?

ACA's 24bn investment in ARADEL was exited at about N400bn. About N370bn gains will be taxed at 10%
(37bn)

If they had waited 4 more months the rate would have been 30% (N111bn)

Agbalowomeri:
What if your shares owned predates the law and you sell say in five years?

Interesting question..
Well, everything thing about the old law should end this 2025.
Any assets carry over into 2026 will be based on the new law.

That said, I think they should charge one CGT on the 5th year one sells only based on the new tax law if applicable.
FG shouldn't back date and charge you CGT in the preceding 4yrs.
One never sold, neither did one utilise any gain proceed for personal use.
So why charge? 🤷

emmanuelewumi:
Will there be a CGT if you made a profit of N20 million on a stock held for 5 years?

It's still 20million in the filling year
I leave you with the conclusion

I think you need to go back to the video and patiently watch the QA section it's not up to 30min and it's very engaging and not boring

chimex38:
Interesting question..
Well, everything thing about the old law should end this 2025.
Any assets carry over into 2026 will be based on the new law.

That said, I think they should charge one CGT on the 5th year one sells only based on the new tax law if applicable.
FG shouldn't back date and charge you CGT in the preceding 4yrs.
One never sold, neither did one utilise any gain proceed for personal use.
So why charge? 🤷

Bro don't sleep on these ooo
Any thing met on your portfolio will be considered
Any green regardless of the year of acquisition will be copied and sent to tax office

emmanuelewumi:
Will there be a CGT if you made a profit of N20 million on a stock held for 5 years?

What the tax man will be looking at is your total cumulative sales in a financial year and the gain on it.
My thinking is that from January 2026 and within that year, all sales transactions is what matter irrespective of whether one has over a billion naira in the portfolio.
If one has over a billion valuation from past 5 years and into 2026, then sales of shares not exceeding the trigger points are made, there should not be CGT

By the way, there's really no such thing as CGT any more under the new tax law.

The CGT law has been repealed, and CGT is now reckoned as PIT for individuals and CIT for companies.

Lofty1000:
Bro don't sleep on these ooo
Any thing met on your portfolio will be considered
Any green regardless of the year of acquisition will be copied and sent to tax office

Yes.. only taxable on the year you sell not the full length of years you held the stock🤷

Agbalowomeri:
Oh was this actually provided for? That's the only sensible thing to do

It's over 2hrs long.
Take your time.

For specific time-frames that touched on the capital market, watch from the timelines below:

Capital market Ngx:
1:29:18--->1:31:18

Crypto
1:44:10--->1:45:07


https://www.youtube.com/watch?v=ueynd-F0zWA

awesomeJ:
ACA's 24bn investment in ARADEL was exited at about N400bn. About N370bn gains will be taxed at 10%
(37bn)

If they had waited 4 more months the rate would have been 30% (N111bn)

Wow..
This is knowledge put to practice
Wisdom is profitable to direct.