The Federal Executive Council has approved a rate of 0.2 percent on qualifying imports coming into Nigeria from the African Union (AU) countries. This approval is a sequel to the decision reached at the AU Summit for Heads of States and Government in July 2016 wherein all Member States were requested to implement a 0.2%…
Recently, the Federal Inland Revenue Service (FIRS) revealed its plan to impose VAT on online transactions in Nigeria. Value Added Tax (VAT) is a tax imposed at 5% on the cost of goods and services supplied in Nigeria except for items specifically exempted or zero-rated under the VAT Act. A taxable person will charge and…
Welcome to BRC’s monthly series on Tax Highlights in Nigeria. The month of April 2019 was relatively calm with respect to tax events. Here are three (3) major events that shaped the Nigeria tax space in April 2019. President Muhammadu Buhari declines assent to the National Housing Fund (NHF) (Establishment) Bill, 2018. More details here. Court of…
In Nigeria, the government generates revenue from the taxation of individuals and businesses. Nevertheless, the Federal Government of Nigeria may exempt a business from corporate income tax for a specific period. This type of tax exemption is known as a Pioneer Status Incentive (PSI). The Nigerian Investment Promotion Commission (NIPC) administers the pioneer status incentive….
March 2019 started on a slow pace till the middle of the month. Here are four (4) major events that shaped the Nigeria tax space in March 2019. Federal Government plans to increase the Value Added Tax (VAT) rate. More details here. Senate passes the National Housing Fund (NHF) (Establishment) Bill, 2018. More details here. …
Under the Pension Reform Act (2014), only employers with 15 employees and above are required to contribute to the Pension Scheme. The Act further provides that private organizations with less than 3 employees will be governed by guidelines. There is now a proposed guideline for this category of employees. The National Pension Commission (PenCom) launched…
“To be?” or “Not to be?” “Would President Mohammadu Buhari assent to the National Housing Fund (Establishment) Bill, 2018? That was the question on the lips of the Nigerian masses as they awaited the President’s verdict on the National Housing Fund (Establishment) Bill, 2018 at the Senate’s plenary session of April 2, 2019. The National…
Under the Personal Income Tax (Amendment) Act 2011, we have two types of annual payroll tax returns. First, the annual employer tax return (Form H1) which shows the annual income and taxes of all employees in a company. More information on Form H1 is here. Second, we have the Income Tax Form for Return of…
Nigeria is getting ready for its first increase in Value Added Tax (VAT) rate since 1993. The Minister for Budget and National Planning, Udoma Udo Udoma and the Chairman of FIRS, Babatunde Fowler announced this on 19 March 2019. By increasing the VAT rate with 50%, the government intends to fund the recent minimum wage…
Food. Clothing. Shelter (Housing). These are three basic needs of human beings. Housing is one of the key parameters for measuring the standard of living as well as the social status of a person. Housing is a product and a process. As a product, housing refers to the output of the construction work. In contrast, housing, as a…