The Federal Inland Revenue Service (FIRS) has issued a Public Notice dated 17 December 2019 on a nationwide tax enforcement exercise to collect all outstanding taxes from tax defaulters. According to the notice, the recovery exercise will start on 24 December 2019. Taxpayers include individuals, partnerships, enterprises, companies, organizations, ministries, departments and agencies with outstanding…
The World Bank (WB) recently released its Ease of Doing Business 2020 Report. Each year, WB releases this report that compares business regulation for local firms in 190 economies. Nigeria’s ranking jumped from 146 to 131; representing its second-highest annual progress of 11.45% in a decade. The highest annual growth remains at 14.2%. Furthermore, the annual…
The Federal Government of Nigeria wants to introduce excise duty on carbonated drinks such as soft drinks and beverages that contain carbonated water. Excise duty is a charge on the production, sale or use of certain locally produced goods. The principal act for excise duties in Nigeria is the Customs and Excise Management Act (CEMA). Carbonated drinks…
On October 8, 2019, President Muhammadu Buhari presented the 2020 Budget and Finance Bill to the National Assembly for consideration and passage into law. The total revenue available to fund the 2020 budget is projected at ₦8.155 trillion (7% higher than the 2019 Budget of ₦7.59 trillion). Meanwhile, the aggregate expenditure is ₦10.33 trillion, leading…
The National Office for Technology Acquisition and Promotion (NOTAP) has automated the process for registering technology transfer agreements. As a regulatory body established under the NOTAP Act of 2004, NOTAP monitors the transfer of foreign technology into Nigeria. Other functions include evaluating and registering technology transfer contracts between a company and a foreign entity. Regulatory…
Federal Inland Revenue Service (FIRS) has issued a notice on how it intends to recover unpaid tax from certain companies. These are companies that are yet to regularize their tax affairs despite the lien placed on their corporate bank accounts. The notice serves as a final reminder as FIRS raised a public alert earlier in…
The Financial Reporting Council of Nigeria, FRCN, revokes its Rule 4 that requires a company to get an approval or register specific transactions with the relevant statutory body in Nigeria before an entity can report such transaction in audited accounts. Rule 4, which emerged in 2016, restricted businesses from recognizing specific expenses in their financial…
As a fiscal measure to encourage investment in the capital market, the Federal Government of Nigeria issued the VAT (Exemption of Commissions on Stock Exchange Transactions) Order, 2014 (Exemption Order) on 25 July 2014. The Exemption Order amended the First Schedule of the Value Added Tax (VAT) Act 2004. All commissions on capital market transactions…
Welcome to BRC’s monthly series on Tax Highlights in Nigeria. The month of June 2019 was filled with tax cases. Here are four (4) major events that shaped the Nigeria tax space in June 2019. Tax Appeal Tribunal affirms exemption of voluntary pension contribution. More details here. Tax Appeal Tribunal rules that gratuities are tax exempt….
One of the objectives of the African Continental Free Trade Area (AfCFTA) is to increase Africa’s trade in the international marketplace. Through a mutual agreement among member countries, Africa can create sound policies for trade negotiations with other continents. AfCFTA took effect on 30 May 2019. The Federal Government of Nigeria (FGN) signed the agreement…