Thread by @BudgITng

10 THINGS should know about Public Finance Bill

It's a thread:

1. Banks will request Tax Identification Number (TIN) before individuals are allowed to open bank accounts. Existing account holders must provide their TIN to be able to operate their accounts. #PublicFinanceBill

2. Non-residents who provide imported technical and management services in Nigeria will be taxable at a final Witholding Tax rate of 10%. #PublicFinanceBill

3. Dividends distributed from petroleum profits will attract 10% withholding tax. This will affect those with investments in oil and gas investments. #PublicFinanceBill

4. A minimum tax (mainly applies to those without profit & unable to pay CIT) provisions of 0.5% of turnover will apply to all companies and exemption will only apply to small companies (less than 25m turnover). Non-resident companies will now pay minimum tax. #PublicFinanceBill

5. Small businesses with turnover less than N25m to be FULLY exempted from Companies Income Tax (CIT) & entities with less than N25m in turnover are exempted from VAT registration. #PublicFinanceBill

6. A CIT rate of 20% applies medium-sized companies with turnover between N25m and N100m. It's a boost for SMEs. #PublicFinanceBill

7. The law will now allow use of EMAILS as a communication medium with tax institutions - FIRS & State Revenue Agencies. #PublicFinanceBill

8. Early payment of Company Income Tax is incentivised with deduction of 2% of tax payable (medium-sized companies) and 1% for large companies. #PublicFinanceBill

9. The Value Added Tax is proposed to increase from 5% to 7.5%. The 2020 Budget projections are based on this new increase. States & LGAs benefit more from VAT increase. #PublicFinanceBill

10. Stamp duty on bank transfers will apply to amounts of N10,000 and above. Transfers between the same owner’s accounts in the same bank will be exempted. Electronic bank transfers included. #PublicFinanceBill