The Finance Bill, 2021 was signed into law along with the 2022 Appropriation Bill, on the 31 December, 2021. The Act introduces significant changes to a 13 tax and regulatory laws in Nigeria in line with government thematic policy. The Act, amends key provisions of Capital Gains Tax Act, Companies Income Tax Act, Federal Inland Revenue Act, Personal Income Tax Act, Stamp
The profits of companies from the exports of goods produced in Upstream, Midstream and Downstream Petroleum operations are no longer exempt from tax under section 23 of CITA Companies may enjoy two years reduction in the rate of minimum tax from 0.5% to 0.25% for either accounting period 1 January 2019 to 31 December 2020 or for accounting period 1 January 2020 to 31 December 2021, as may be elected by the taxpayer.
The rate of tertiary education tax has been increased from 2 per cent of assessable profits to 2.5% of assessable profits. Non-Resident Suppliers of taxable goods or services to Nigeria, or any other person as may be appointed by the Service to collect tax under the VAT Act are now obligated to collect the tax and remit to the Service.
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