Brace up for change people, the new Finance Bill is bringing some sweet changes to Nigeria’s tax landscape | Finance Bill 2019 passes second reading – seeking to change the Nigerian tax landscape - blog.deloitte.com.ng/finance-bill-2…
Proposed changes in the tax laws will affect Nigeria companies, foreign companies, individuals. Some long standing pains are about to be removed and new wake up calls going out to taxpayers. There are strong positives on this new way of thinking. Let’s get the bill passed. 
The bill introduces income tax exemption for Small companies with turnover below N25m while medium companies with turnover between N25m and N100m will enjoy reduced tax rate at 20%. Good stuff, right ?
The naughty dividends tax rule and hurtful commencement and cessation rules are being proposed for ammendements. Insurance companies will no longer suffer restriction on loss relief nor be disenfranchised from claiming deductions on actual expenses. There’s a lot wrapped in here.
Real Estate Investment Trusts are expected to enjoy clarity on applicable tax exemptions. This has been long in coming and hugely complementary to bridging the housing deficit and opening up the space for commercial capital.
Bases for taxing non-resident companies has now been proposed to be expanded making it easier tax income sources from Nigeria. With proposed changes, NRCs will also be liable to minimum tax like Nigeria companies to remove discriminatory treatments.
Penalty for late filing of corporate tax returns will double in the month of failure and go up by 500% for subsequent months that the failure continues. Brace up, people.
On VAT, rate is proposed to increase to 7.5%, registration threshold had been introduced to exclude companies with N25m annual turnover, definition of “good” and “service” including clarifications on meaning of supplies in Nigeria and exempted items have been increased.
On excise duties, imported goods are now liable to excise duties to eliminate the unfavorable discriminatory treatment to locally manufactured excisable items.
Proposed change to personal income tax include upgraded requirements for Banks’ KYC - No TIN, No bank account. New and Old bank customers to furnish their tax IDs. No more hiding behind one finger. Love it ?
Another sweet one for corporates- capital gains tax will no longer apply on inter-company transfer of assets by related companies. You’ll love to see this one passed if you have a group structure as it provides some measure of relief to compensate absence of group tax in Nigeria.
Change coming to Stamp duties law too with official introduction of electronic payments and increase in threshold for receipts liable to stamp duties.
Here with @BBoason discussing the new Finance Bill during the live studio analysis of #FGNBudget20 on @Channelstv by @NGRPresident. We are expecting more than the Appropriation Act this year - lots of changes on the fiscal side.
Annual submission of Appropriation Bill together with a Finance Bill is a great way of deepening tax penetration; it creates the responsiveness and flexibility needed on the tax side of the fiscal policy.
