Tax expert explains what Imisi owes on N150M prize win

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Tax consultant Akin Akinwale has broken down the tax implications of Imisi’s N150 million reality show prize, reminding Nigerians that such winnings are not exempt from taxation.

According to Akinwale, under the Personal Income Tax Act (PITA), any prize, whether cash, a car, or a house, is considered income and is therefore taxable.

Winners not exempted

Winners are generally liable to Personal Income Tax (PIT), collected by the State Internal Revenue Service in their state of residence, or by the Federal Inland Revenue Service (FIRS) if the recipient is a non-resident.

He also noted that in some cases, show organisers may deduct Withholding Tax (WHT) at source before awarding the prize. This acts as an advance payment toward the winner’s income tax liability.

Akinwale added that if the prize comes from a registered company, the payout can count as part of the company’s deductible marketing or promotional expenses for Company Income Tax (CIT) purposes, but this does not exempt the winner from their personal tax obligations.

Imisi Bags N150 Million Reality Show Prize

Imisi recently made headlines after winning a N150 million prize on BBNaija reality show, one of the largest rewards in the show’s history.

The prize, which reportedly includes cash and other benefits, has elicited excitement among her fans.

His words …

“Winning money on a Nigerian reality show is not tax-free. Under the Personal Income Tax Act (PITA), any reward such as money, a house or car, is considered income and therefore taxable.

Such winnings may attract Personal Income Tax (PIT), usually collected by the State Internal Revenue Service of the winner’s state of residence, or by the Federal Inland Revenue Service (FIRS) if the winner is a non-resident.

In some cases, the organisers may also deduct Withholding Tax (WHT) at source before paying the prize, as an advance payment of the winner’s income tax.

If the winning comes from a registered company, the amount paid out as a prize can count as part of the company’s deductible marketing or promotional expenses for Company Income Tax (CIT) purposes, but that does not exempt the recipient from their own tax obligations.

Imisi, call me now ”

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