Taxes & Tariffs | |
Taxes & Tariffs | |
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Friday, November 08, 2019 /10:23 AM / News /
Header Image Credit: Daily post Nigeria
Small
businesses with turnover less than N25m to be exempted from Companies
Income Tax
A lower CIT rate of 20% to apply to medium-sized companies with turnover
between N25m and N100m
Commencement and cessation rules modified to eliminate overlaps and gaps to
avoid double taxation and complication during commencement
Minimum tax provisions amended to 0.5% of turnover and exemption only applies
to small companies (less than 25m turnover), so non-resident companies will now
pay minimum tax
Insurance companies can now carry forward tax losses indefinitely, deduct
reserve for unexpired risks on time apportionment bases while special minimum
tax for insurance has been abolished
Bonus of 2% of tax payable (medium-sized companies) and 1% for large companies
for early payment of CIT
Introduction of thin capitalisation of 30% of EBITDA for interest
deductibility. Any excess deduction can be carried forward for 5 years
Deemed tax presence for non-residents with respect to imported technical and
management services now taxable at a final WHT rate of 10%
Any expense incurred to earn exempt income now specifically disallowed as a
deduction against other taxable income
Dividend distributed from petroleum profits now to suffer 10% withholding tax
Banks to request for Tax Identification Number (TIN) before opening bank
accounts for individuals, while existing account holders must provide their TIN
to continue operating their accounts
Email correspondences to be recognised for communicating with tax authorities
The meaning of supply and definition of goods and services has been expanded to
cover intangible items other than land, among others
Value Added Tax Act, Cap V1, LEN 2007 (as amended)
Specific requirement for VAT deregistration for
discontinuing operations
Introduction of VAT reverse charge on imported services
VAT registration threshold of N25 million turnover in a calendar year to be
introduced
Remittance of VAT now to be on cash basis, that is, difference between output
VAT collected and input VAT paid in the preceding month
Compensation for loss of employment below N10m to be exempted from CGT.
Stamp Duties Act Cap $8,
LFN 2007
Stamp duty on bank transfer to apply only on amount
from N10,000 and above. Transfers between the same owner's accounts in the same
bank also to be exempted.
Download Here - 2019 Finance Bill
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