Like it did last year offering a range of tax incentives to Nigerians through the Finance Bill later passed into law, the Buhari administration is again offering more this year through the 2020 Finance Bill so as to attract more incentives and make doing business in Nigeria more competitive.
Exemption of small companies from payment of education tax under the Tertiary Education Trust fund -companies with less than N25m turnover are eligible “Last year, we passed a legislation giving small companies with a turnover of less than 25 million a year, tax exemption from the Companies Income Tax, while medium-sized companies with their turnover of between N25 million to a N100 million now pays Companies Income Tax at the lower rate of 20%. And then, services provided by Micro Finance Banks are completely exempted from VAT. So, no microfinance bank pays VAT now for its services.
Making the point about the exemptions from education tax, the Vice President added that “we have an exemption of small companies, with less than 25 million turnovers from payment of the 2% educational tax under the tertiary Education Trust Fund. What we are saying now is that for companies that have a turnover of less than N25 million, they are no longer required to pay that 2% tax for the education tax fund so their tax burden is reduced.
“Also, a Mass Housing programme where we are building 300,000 homes in all states of the Federation using local materials and using small to medium-sized construction companies and using direct labour.