Finance Act 2020: Key Changes and Implications

Tuesday, January 12, 2021 / 07:00 AM / By Deloitte / Header Image Credit: PwC Nigeria

President Muhammed Buhari, on 31 December 2020, signed the Finance Act 2020 ("the Act") alongside the 2021 Appropriation Act into law. This reaffirms the Federal Government of Nigeria's commitment to enact fiscal policy annually, alongside the passage of the annual budget into law (i.e. enactment of Appropriation Act) and aligns with global best practice.

The Act, which took effect on 1 January 2021, amended the provisions of 14 tax and fiscal related legislation, namely:

• Capital Gains Tax Act (CGTA)
• Companies Income Tax Act (CITA)
• Industrial Development (Income Tax Relief) Act (IDITRA)
• Personal Income Tax Act (PITA)
• Tertiary Education Trust Fund (Establishment etc.) Act
• Customs and Excise Tariff, etc. [Consolidation] Act (CETA)
• Value Added Tax Act (VATA)
• Stamp Duties Act (SDA)
• Federal Inland Revenue Service (Establishment) Act (FIRSEA)
• Nigeria Export Processing Zones Act (NEPZA)
• Oil and Gas Export Free Zone Act (OGEFZA)
• Companies and Allied Matters Act (CAMA)
• Fiscal Responsibility Act (FRA) and Public Procurement Act (PPA)

In addition to the above, the Finance Act 2020 created a Crisis Intervention Fund (CIF) and its sub-fund, Unclaimed Funds Trust Fund (UFTF).

This newsletter gives an overview of the Act, analyses the key provisions vis-a-vis the changes to the primary legislation and highlights the potential tax implications for stakeholders. Please click here to explore the detailed newsletter.

Download Here - Finance Act 2020

Related News

1.      Unclaimed Funds Trust Fund: We Can Still Get It Right

2.      Exemption of Sales in the Ordinary Course of Business from WHT

3.      Finance Act 2020: Unclaimed Dividends and Dormant Balances

4.      20 Key Changes in the New Finance Act 2020

5.      Tax Appeal Tribunal Provides Criteria for WHT Exemption

6.      Senate Passes Finance Bill 2020

7.      On the FIRS Public Notice on Recovery of Outstanding Taxes - A Caveat

8.      Narrow Concentration of Corporation Tax Payers

9.      Taxpayers Relieved from Tax Investigation Beyond Six Years

10.   FIRS Puts Taxpayers on Notice on the Recovery of Outstanding Taxes