New Pricing for QuickBooks Online
- 6 Modile Way, Surulere, Lagos
- (+234) 813 601 5531
The Finance Act 2019
Value Added Tax is now 7.5% as the Finance Act 2019 was signed into law by President Muhammadu Buhari on Monday 13th January 2020 being the date of commencement as was published in the Gazette effective February 1, 2020.
In October 2019, President Muhammadu Buhari presented the Finance Bill alongside the 2020 Appropriation Bill to the National Assembly for consideration and passage into law. The National Assembly subsequently passed the Finance Bill and transmitted same to the President for his assent, in line with the provisions of Section 58 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended). The President subsequently assented to the Finance Bill, weeks after he had signed the Appropriation Bill in December 2019.
The Finance Act 2019 amends some key provisions of the Companies Income Tax Act (CITA), Value Added Tax Act (VATA), Personal Income Tax Act (PITA), Petroleum Profit Tax Act (PPT), Stamp Duties Act and the Customs, Excise Tariff Etc (Consolidation) Act. Some of the prominent amendments effected by the Act include:
- The increase of the VAT rate from 5% to 7.5%;
- The introduction of a ₦25 million VAT compliance threshold;
- The exemption of companies with less than ₦25 million annual turnover from payment of CIT;
- Expansion of the scope of companies taxable in Nigeria to include companies that operate within the Nigeria digital space, among others;
- Requirement of a tax identification number for opening of bank accounts or continue operation of existing bank account;
- Provision of exceptions for the application of excess dividend tax under Section 19 of the CIT Act; and
- Imposition of excise on certain imported products.
The Act sets five strategic objectives, which include: raising government revenue through various fiscal measures, reforming domestic tax laws to align with global best practice, promoting fiscal equity by mitigating instances of regressive taxation, supporting small business entities in line with Ease of Business Reforms and introducing tax incentives for investments in infrastructure and capital market.