Petroleum Profits Tax (PPT) Compliance

Understanding the Challenges of PPT Compliance

PPT is a unique tax regime with its own set of rules and regulations. Key challenges companies face include:

• Complex Calculations: Determining chargeable profits under PPT involves intricate calculations considering allowable deductions, capital allowances, and other factors.
• Ever-Evolving Regulations: The regulatory landscape for PPT is constantly evolving, with new pronouncements and interpretations from relevant authorities. Staying abreast of these changes is crucial for accurate compliance.
• Record-Keeping and Documentation: Maintaining meticulous records and documentation is essential for supporting PPT computations and meeting reporting requirements.
• Transfer Pricing: Transactions between related parties within the oil and gas sector are subject to transfer pricing rules, adding another layer of complexity to PPT compliance.
• Dispute Resolution: Disagreements with tax authorities on PPT assessments can arise, requiring expert representation and negotiation skills to achieve favorable outcomes.

How Stransact Can Help

Stransact's team of experienced tax professionals possesses in-depth knowledge of the Nigerian oil and gas industry and the intricacies of PPT legislation. We offer a comprehensive suite of services to ensure your company remains compliant:

• PPT Computation and Filing: We accurately calculate your PPT liability, considering all allowable deductions and exemptions, and prepare and file your tax returns in accordance with regulatory deadlines.
• Tax Planning and Advisory: We provide proactive tax planning strategies to optimize your tax position and minimize your overall tax burden. Our experts stay abreast of regulatory changes and advise you on their potential impact on your business.
• Transfer Pricing: We assist with preparing transfer pricing documentation, conducting benchmarking analyses, and defending your transfer pricing policies during tax audits.
• Record-Keeping and Documentation: We guide you on proper record-keeping practices and help you establish robust documentation systems to support your PPT computations and ensure compliance.
• Dispute Resolution: We represent you in tax audits and disputes with tax authorities, leveraging our expertise and negotiation skills to achieve the best possible outcome for your company.
• Training and Capacity Building: We conduct customized training programs for your finance and tax teams to enhance their understanding of PPT and related regulations.

Why Choose Stransact for PPT Compliance?

• Industry Expertise: Our team has extensive experience working with oil and gas companies in Nigeria, providing tailored solutions to address your specific challenges.
• Up-to-date Knowledge: We stay current with the latest PPT legislation, pronouncements, and interpretations, ensuring your compliance strategy remains accurate and effective.
• Proactive Approach: We proactively identify potential tax risks and opportunities, helping you optimize your tax position and avoid costly penalties.
• Strong Relationships: We maintain strong relationships with relevant authorities, facilitating effective communication and efficient resolution of tax-related issues.
• Commitment to Client Success: We are dedicated to providing exceptional service and building long-term partnerships with our clients.

Partner with Stransact and Simplify Your PPT Compliance

Navigating the complexities of PPT in Nigeria can be challenging. Stransact offers the expertise and support you need to ensure compliance, minimize your tax liabilities, and focus on your core business operations.