Nigeria’s finance bill signed into law – Important things you need to know

 Monday, 13^th January,2020 Nigeria’s President signed the finance bill into law     

Here are some facts you must know about the bill.

• The law will increase the value-added tax (VAT) from 5% to 7.5 per cent.
• Stamp duty on bank transfers will apply to amounts of N10,000 and above. An individual with multiple accounts in the same bank will be exempted with electronic bank transfers included.
• Opening a bank account will require a Tax Identification Number (TIN). Existing account holders must provide their TIN to continue operating their accounts.
• Small business with turnover less than N25m will be fully exempted from Companies Income Tax (CIT). Entities with less than N25m in turnover are exempted from VAT registration.
• Early payment of CIT is encouraged with a deduction of 2% applies medium-sized companies with a turnover between N25 and N100m annually.
• The law will now allow the use of emails as a communication medium between the Federal Inland Revenue Service (FIRS) and other state tax institutions.
• Non-resident companies providing services in Nigeria will be taxable at a final withholding Tax rate of 10%.
• Dividends distributed from petroleum profits will attract 10% withholding tax for companies with investments in oil and gas investment.