Nigeria: Finance Bill, 2021 and Appropriation Bill, 2022; tax measures are enacted
Changes were made to the tax proposals in the Finance Bill, 2021 during the legislative process
Changes made to the tax proposals in the Finance Bill, 2021 during the legislative process
The president of Nigeria on 31 December 2021 signed into law two bills—the Appropriation Bill, 2022 and Finance Bill, 2021—following passage by the National Assembly.
There were changes made to the tax proposals in the Finance Bill, 2021 during the legislative process, including updates to the provisions of the laws concerning the capital gains tax and the tertiary education trust fund (establishment, etc.).
As proposed in December 2021—read TaxNewsFlash—the tax measures in the Finance Bill, 2021 concerned:
- Modification of value added tax (VAT) provisions to allow for easier collection and remittance of VAT on “business-to-customer” (B2C) e-commerce transactions
- Provisions for taxation of the income/ profits of lottery and gaming businesses
- Expansion of the authority of the Federal Inland Revenue Service to assess income tax on a deemed profit basis for companies with a significant economic presence in Nigeria
- Restriction of capital allowance claimable by a company engaged in both taxable and tax-exempt activities
- An election by taxpayers in respect of the reduced minimum tax rate of 0.25% available to mitigate the impact of the coronavirus (COVID-19) pandemic
- Rules for claiming an incentive with regard to downstream gas utilization projects
- The authority of the Minister of Finance to issue regulations regarding stamp duties and electronic money transfer (EMT) levies collected between 2015 and 2019
- The definition of “capital requirement” in the insurance law as to what constitutes capital for insurance businesses
Read a January 2022 report prepared by the KPMG member firm in Nigeria
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