The Finance Act: What you need to know

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

10 Nigerian Movies to Watch on Netflix this Weekend

A lot of Nigerian movies have come out on Netflix recently. If you’ve been looking for what to watch...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...
- Advertisement -

Earlier, President Muhammadu Buhari signed into law the Finance Bill, 2019 which accompanied the 2020 fiscal budget with an objective to reform domestic tax laws, promote fiscal equity, incentivize investments in infrastructure & capital markets, support small businesses and raise revenues for the Government.

The Finance Act: What you need to know - Brand Spur
Source: FMF, Budget Speech, United Capital Research

To achieve these objectives, sweeping changes were made to seven different tax laws – the Companies Income Tax (CIT), Value Added Tax (VAT), Petroleum Profits Tax (PPT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Customs and Excise Tariff Etc. (Consolidation) and the Stamp Duties Acts. Also, notable highlights of the changes include an increase in the rate of VAT from 5.0% to 7.5%; 0.0% CIT rate for small businesses and a lower rate of 20.0% for medium-sized companies; requirement for TIN to open and operate a business bank account; increase in the threshold of online transfers liable to stamp duty of N50 from N1,000 to N10,000; and taxation of foreign entities involved in digital transactions with significant economic presence in Nigeria.

Yet, uncertainty remains as to the effective date of the law. Technically the law takes effect from the date the bill is signed into law. However, since the new law have not been gazetted we expect that the effective date will be soon (say the beginning of Feb 20) availing tax authorities and taxpayers some time to digest the changes.

Read Also:  There's no Multiple Taxation in Lagos - Sanwo-Olu
- Advertisement -

United Capital Research

- Advertisement -
The Finance Act: What you need to know - Brand SpurThe Finance Act: What you need to know - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Read Also:  FG moves to raise VAT rate to 7.2%

This site uses Akismet to reduce spam. Learn how your comment data is processed.

The Finance Act: What you need to know - Brand SpurThe Finance Act: What you need to know - Brand Spur

Latest News

HealthPlus crisis: Mrs. Bukky George unfair to me – Leo Stan Ekeh

Mrs. Bukky George first contacted the Zinox Chairman, Leo Stan Ekeh via SMS on March 31st, 2020 at...

Single Mother’s Hope Restored as Airtel Saves Infant with Hole in Heart

Leading telecommunications services provider, Airtel Nigeria has fulfilled its promise to save the life of Daniel Akani, a physically impaired child who was diagnosed...

Customers meet farmers supplying Shoprite store farm-fresh produce

Nigerian farmers will have the opportunity to sell their fruit and vegetables directly to Shoprite customers on Saturday, 28 November, as part of the...

Here Are The Most Profitable Startups That Will Bring You Big Gains In 2020

As the pace of technological advancement increases, the scope for the evolution of newer start-ups is on the rise. This is a time when...

Panasonic releases 4K PTZ Camera suitable for shooting live videos

Panasonic recently released 4K Integrated PTZ Camera AW-UE100W/K equipped with a range of functions including 4K 60p/50p shooting and 12G-SDI output. The camera supports a...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -The Finance Act: What you need to know - Brand SpurThe Finance Act: What you need to know - Brand Spur