Capital Tax Gains Deductions
What is Capital tax gains ? Who pays it?
Tobi Odukoya
Last Update 3 jaar geleden
Capital tax Gains is a levy on profit from investments issued by the government. A capital gains tax is a tax on the growth in value of investments incurred when individuals sell those investments.
How exactly does it work?
When profit is made on investments while trading on Emuut, 10% of the profit is to be taxed according to the Capital Gains Tax (CGT) Act, Cap. C1 LFN 2004 (as amended) of The Finance Act 2020, Federal Inland Revenue Service.
When profit is made, the system allows you to withdraw the sum of the money invested (the capital) without being taxed, after which 10% of consequent withdrawals made from your eWallet are taxed.
Who pays it?
The tax is only paid by those who make profit on their investments. You do not have to request for it as it is automatically deducted by the system upon making a cash-out request.