Commentary

3.2 Employment-related shares and share options

Nigeria
Nigeria | Commentary

3.2 Employment-related shares and share options

Nigeria | Commentary

3.2     Employment-related shares and share options

Employees' share-based earnings can fall under PITA, s 3(b) which states that all forms of compensation and benefits granted from an employment relationship are taxable income in the hands of the employee.

Employee share-based compensation settled in cash is part of the earnings from which the employer is obliged to deduct income tax at source under PAYE and pay this over to the FIRS.

The taxation of employee share-based compensation settled in equity can be captured by the sweeping PITA, s 3(b) and be subject to income tax and withholding on the exercise

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