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GRATUITIES ARE NON-TAXABLE INCOMES: Tax Appeal Tribunal Rules

July 1, 2019

The Tax Appeal Tribunal (TAT) of the South-East Zone on June 21, 2019, in its decision in Nigerian Breweries Plc v Abia State Board of Internal Revenue (TAT/SEZ/002/17) held that gratuities are exempted from income tax under the Personal Income Tax Act (PITA), 2011.

The matter was instituted in 2017 by the Nigerian Breweries Plc (โ€œthe Appellantโ€), where the Appellant contested the decision of the Abia State Board of Internal Revenue (โ€œthe Respondentโ€) on taxing of gratuities paid to its retirees. The main ground of objection raised by the Appellant was that the Respondent erred in law when it assessed the Appellantโ€™s employees to tax on gratuities paid to them by the Appellant.

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