Matters Arising from Implementation of Finance Act 2019


Sunday, June 21 , 2020 / 09:12 PM / by KPMG Nigeria / Header Image Credit:  KPMG Nigeria


Proshare Nigeria Pvt. Ltd.

The Federal Inland Revenue Service (FIRS or "the Service") in May 2020 issued the following Information Circulars numbered 2020/02 - 08 ("the Circulars"):


  1. Clarification on the Implementation of the Value Added Tax (VAT) Provisions of the Finance Act, 2019 ("VAT Circular");
  2. Circular on Tax Implications of the Operation of Regulated Securities Lending Transaction (SEC Lending) in Nigeria ("SEC Lending Circular");
  3. Clarifications on Sundry provisions of the Finance Act 2019 as it relates to Companies Income Tax Act ("CITA Circular");
  4. Clarifications on the Provisions of the Stamp Duties Act ("Stamp Duties Circular");
  5. Clarification on Commencement and Cessation Rules, and Business Reorganisation: - Sections 29 of CITA, 32 of CGTA and 42 of VATA (as amended by the Finance Act, 2019) ("Business Reorganisation Circular");
  6. Circular on Tax Implications of Operation of Real Estate Investment Companies ("REIC") in Nigeria ("REIC Circular"): and
  7. Clarification on the Amendment to Section 16 of Companies Income Tax Act (CITA) in Relation to Taxation of Insurance Companies ("Insurance Taxation Circular")


Proshare Nigeria Pvt. Ltd.

The Circulars are aimed at providing guidance to stakeholders on the interpretation of the amendments to extant tax laws by the Finance Act, 2019 ("Finance Act"), and practical issues associated with their implementation. The Circulars supersede any previously issued circular, notice or publication by the FIRS, which is inconsistent with the Circulars to the extent of its inconsistency.


We commend the FIRS for the timely issuance of the Circulars to assist taxpayers to understand their obligations under the various tax laws amended by the Finance Act and further improve their compliance with the laws. The Circulars have also clarified the FIRS' views on some contentious provisions introduced by the Finance Act.


However, there are matters arising from the clarifications and guidance provided in the Circulars that may have unintended consequences. This publication contains analysis of those issues and highlights key areas requiring further clarifications from the FIRS.


Download Here Full PDF Report


Download Here -  Finance Act 2019 Awaiting Gazette

Download Here -  Finance Act 2019 Gazetted

Proshare Nigeria Pvt. Ltd.

Related News - Finance Act 2020

  1. FIRS Finance Act Circular: Amendments to the Stamp Duties Act
  2. FIRS Finance Act Circular: Regulated Securities Lending Transactions
  3. FIRS Issues Information Circulars on Provisions of Tax Laws Amended by the Finance Act, 2019
  4. FIRS Issues Information Circular on the Implementation of VAT Changes in the Finance Act
  5. 10th Detail Business Series Examines Impact Of Finance Act On Nigeria's Economy
  6. 10th DETAIL Business Series To Discuss "FINANCE ACT 2019: Impact On Business In Nigeria"
  7. Finance Act 2019 Published In The Gazette With A Commencement Date of January 13, 2020
  8. General Implications of the Finance Act on the Nigerian Economy
  9. 7.5% VAT Implementation In Nigeria To Commence February 1, 2020 - Finance Minister
  10. 2020 Fiscal Act Comes With Plenty of Goodies but Also Some Baggage
  11. Finance Bill Signing, Budget Implementation Key To Deepening Capital - Oscar Onyema
  12. Will the FG Tax Reforms Support Revenues in 2020?
  13. President Buhari Signs Finance Bill, 2019
  14. Nigeria's Finance Bill 2019 Key Changes and Implications
  15. Finance Bill 2019 Compels Individuals to Produce Their TIN Before Operating Bank Accounts
  16. House of Representatives Passes Finance Bill, 2019
  17. Finance Bill 2019: Tax Implications for Nigerian Entities
  18. Senate Passes Finance Bill, 2019
  19. 2019 Finance Bill: 20 Sweeping Changes To Nigeria's Tax Laws That May Affect You
  20. The Key Changes In The 2019 Finance Bill - Focus on Taxation


Proshare Nigeria Pvt. Ltd.

Related News - Taxes and Tariffs

  1. COVID-19 Impact: Taxpayers' Responsibility and Expectations
  2. Tax Administration in Challenging Times and Future Outlook
  3. Taxing Nigeria's Digital Economy, The Issues
  4. NCC and FIRS Sign MOU to Ascertain VAT Elements of Telcos' Transactions
  5. FIRS and New TCC Portal: Understanding the Inconvenient Truth of a Missing Portal
  6. FIRS Launches New TCC Application Portal
  7. FIRS' Public Notice on Regularisation of Tax Status of Dormant Companies
  8. FIRS Extends Deadline for Waiver of Interest and Penalty on Outstanding Tax Liabilities
  9. Finance Act 2019: Minister Clarifies the Meaning of Significant Economic Presence
  10. Yomi Olugbenro of Deloitte to Discuss Revised Tax Measures on WebTV Tomorrow
  11. The Finance Act 2019 Introduced an Amendment to the CITA to Tax a Foreign Entity
  12. Minister of Finance Issues Order on Significant Economic Presence by Non-Nigerian Companies
Proshare Nigeria Pvt. Ltd.
Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.
Related News