• 1 Marks

TAX – Nov 2020 – L1 – SA – Q20 – Taxation of Non-Residents

Identify the minimum tax rate for foreign companies operating in air, sea, and telecommunication businesses in Nigeria.

Which of the following is the minimum tax rate applicable to foreign companies operating in air, sea, and telecommunication businesses in Nigeria?
A. 20%
B. 10%
C. 7½%
D. 5%
E. 2%

C. 7½%

Explanation:
Foreign companies operating in specific sectors, such as air, sea, and telecommunications, are subject to a minimum tax rate of 7½% on their gross turnover in Nigeria. This rate ensures that such companies contribute a minimum level of tax revenue regardless of their profit levels.

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