28 Apr GEPLAW FOCUS: THE NIGERIAN FINANCE ACT 2019: SIGNIFICANT CHANGES AND IMPLICATIONS
The Finance Bill 2019, was signed into law on the 13th of January 2020 by President, Muhammadu Buhari. The Finance Act, 2019(the Act) introduces modifications to the Nigerian tax regime by amending the Corporate Income Tax (CIT) Act, Personal Income Tax (PIT) Act, Petroleum Profit Tax (PPT) Act, Capital Gains Tax (CGT) Act, Value Added Tax (VAT) Act, Customs Duties and Stamp Duties Act, to include tax concessions, limitations and variances intended to create a more efficient tax regime in Nigeria
This report provides an analysis of the key amendments contained in the Act and the expected impact of these changes on various sectors of the economy.
2. KEY SECTIONS OF THE ACT AND CHANGES TO THE NIGERIAN TAX LANDSCAPE
2.1 COMPANIES INCOME TAX ACT (CITA)
The CITA has undergone perhaps the most extensive of changes by the implementation of the new Act, this includes changes to the taxation rules of dividends from Nigerian Companies, the modification of the excess tax rules, revision of taxes on foreign companies in Nigeria and concessions for the tax burden experienced by small and medium size companies in Nigeria.
a. Relief from double taxation and investment incentives.