PRESIDENT, FEDERAL REPUBLIC OF NIGERIA 14 October, 2019 Distinguished Senator Ahmad Ibrahim Lawan President ofthe Senate, ‘Sonate Chambers, National Assembly Complec, ‘Three Arms Zone, co Dakiquiled Sen: Freaicent, EASURES SUPPORTING THE 2020 BUDGET Pureuant fo Sectons 68 and 69 of Constitution of the Federal Republi of Nigeria 1600 (2s amended), | hereby orvard Finance Bil 2019, for passage into lw by the Se 2. The Finance Bil, 2018 proposes incremental, but necessary, changes to Nigeria's tax and fiscal laws, to ensure the opimal funding ofthe 2020 Budget. Specialy, the Bil has fve (5) sirategic objectives, viz; ‘2. Promating fiscal equly by miigting instances of regressive taxation; ._ Reforming domestctax laws to align with global best practices; ©. Inteducng tax incextves fo investments in infrastructure ane capital markets; <4. Supporting small bisinesses in ine withthe ongoing Ease of Doing Business Reforms: and @. Raising revenues for Goverment, by various fiscal measures, including a proposed inorease in the rate af Value Adged Tax from 8% to 7.5% 3. Whe trast thatthe Bl would be expeditiously considered by the Distinguished Senate, Piease accept, Mr. Senate President, the assurances of my highest consideration,FINANCE BILL 2019EXPLANATORY MEMORANDUM ‘This bills to among other things amend the following tax provisions and make them more responsive tothe lax reform policies ofthe Federal Government and enhance its zplementation and effectiveness. 4) Companies treome Tax Act, Cap. C2t, Laws of the Federation of Nigeria, 2004 (as amended to dite) ‘The Bill seeks fo amend the provision ofthe Companies Income Tax Act to, amongst to other things, ub Base Erosion and Profit Shifting (BEPS) as proposed bythe Oganston for ‘Econemis Cooperation and Development (OECD) and thereby broaden the triggers for domestic taxation of income eared by non-resident companies in Nigeria through ‘dependent agents and via online market platforms. The Bill also seek to addres the taxation of industries, such as insurance, start-ups and the capital markets, evaluated by the Faderal Government of Nigeria as erica to the growth and development ofthe Nigerian economy with a view to stimulating activities in those sectors an fostering overall economic growth by Value Added Tix Act, Cap Vi, LEN 2007 (as amended) Inline with global best practice, this Bill proposes to improve the efficiency of the Nigerin VAT system taking into consideration recommendations from various | stakeholder groeps. In adition to simplifying the VAT landscape, the Bill also seeks to expand VAT coverage by addressing some critical issues, such a5 taxation of te digital ‘economy, VAT registration thresholds and intangibles, 3e Tariff Ete. (Consolidation) Act, Cap C49, Laws ofthe Federation of ©} Customs and Nigevia 2008 lina bid to create a level playing field for local manufacturers, this bill wishes to subject ‘stain imported goods to excise duties in sirlar manner as their locally manufactured ‘counterparts. <1) Personal income'Tax Cap PS, LEN 2007 (as amended) ‘The Bil also sees to provide clarity and efficiency in the administration of individual income taxes in Nigeria ©) Capital Gains Tac Act Cap C1, LEN 2007 ‘The bill also covers the taxation of business combination and seeks to prevent abuse of| provisions of the Acton group restructuring. 1) Stamp Duties Act Cap $8, LEN 2007‘Theil aso seeks to increaso revenue generation from duties on electron stamps. 1g) Petroleum Profit Tax This Bill seeks to improve revenze by removing the tax exemption granted for dividends ‘or income received from companies charged under Petrolou Profits Tax Act2%, SREY CONTENTS Pant Direct Taxes Compares Ina Tas Charge of tax ‘dentfcation ofa compeny Nigerian Companies Insurance Comzanies Payment of dividend by Nigerian companies [Nigerian dividends received by companies other than Nigerian companies Profits exempise Deductions alowed Deductions not allowed Basis for computing assessable profits Total profits from all sources Payment of minima tax Gas utlzation (downstream operations) Rates of x Replacement of cbsolet plant and machinery Dividends and tac on interim dividends paid by Nigerian companies SelFassessment of tax payable Returns an provisional account Time within which tx (including provisional ax) is tobe paid Deduction of tax rom interest ete Deduction of ta from dividend Deduction of tax source Interpretation (CIT) ‘Third Schedule Seventh Schedule ~ Deductible Interest Petroleum Profits Tes Restriction ofeflat of the Personal Income Tax Act and other Acts Personal incon Tax Persons on whom ti tobe imposed Deductions alowed Personal elif and elif for children andl dependents Information tobe provided by bankers2 = 8. 5. 52, 53 En Revision incase of objection ‘Penalty for allure to deduct tx Third Schedule Interpretation (PT) Peet Indircet Tax Value Adel Tax “Texable goods a services Rate of Tax Registration and deregistration requirements [Registration by non-resident companies Twable person to render rtuins Remission of tox ‘ifect of aon remittance Value Added Tax Technical Committee Failure to notify change of address Failure to register Foifure to submit returns Business sold or transferred leverpretation| First Schedule (VAT) Customs an Excise Duties bet Bacse Duty Part (Capital Gains Tax “Exemption of tx on gain arising from take-overs Personal Injury Intorpeetation (GT) Part Stamp Duties Interpretation Provisions as to duty upon receipts(Certain forme of receipts not dutiable Schedule Stamp Duties)Section Charge of tax L 5 9 ) Pat Direct Taxes Companies Income Tax Section 9 of the Companies Income Tax Act (CIT Act} ‘samended as follows In subsection (1) by deleting "in respect” and inserting immediatly after ‘Nigeria’ the words “that are ot stbjet fax une the Cpl Gains Tax Act, Patroewn Profits Tax Act and Personal Income Tax Act ‘Such profits shall include, but shall not Be lint fo.” By insecing an expanded definition of interest ant dividend in subsaction 1) of Section 8 “for the purposes of tis Act: interest sal ince compensating pryments reve by Borrower from ts approve agent ora Lene ina Regulated Securities Lending Transaction provided tht the wnderying tons ining so the compensating yet is recep oferty Lender onthe tlre it received from its approved agent ora Borer In a Regula Secures Exchange Tratsacton, iden sat cade compensating payments eeced by 1 Loder rom its epoaced agent or Borrote i Regulated Securities Lending Transaction ifthe uderiying trunsacton going rise tthe campensaing nayment a receipt of dens bya Breer on any ‘Shares or securities rete fom its approed agent ora Lender ina Reguioed Securities Lending Transaction” By inserting a proviso to Section 9 (1) (g as follows: “or the purpose of this scton, scr or shares shall ot be deme fo be disposed of yo Lenser, Borrower or ‘approved agent or acre by aBorower, approved gent or Lender ifsuc curio Shares are transfered froma Lender ana subseuenly return bya Borower Ina Regulated Securities Lending Transaction” Justification Topromoe fiscal equity by ensuring compas ae not lane tie othe same income steam Toinsplement propos promi icestinent in Securities Lending Transaction cand timate aetoty i he ‘itl mark. ‘The terms “Lender” Borrower”, "Regulated Securities Lending Transaction” ara defined in Section 23 of thls Finance Bil ‘hat amends Seton 105 (L) of ‘he Companies end Fncome Tat ‘At, ein the efron Section thera (Other prisons ne mae to stipulate the te frmenon applicable to Secures Teng Transactions in Section 8, 9,20, 21, 22of this Finance Bll and ens there no double ton such Cranston, but tha ta ceallected one on the economic Substance teeafMensaton of Company Nigerian Comprnies 2 8 Section 10 of the CIT Acts hereby amended by intoducing a new subsection (2) sfllows (2) Every person engaged in banking in Nigeria stall ‘regu all compas to provide ter ba identfation rer as precoitinfor opening aba ecat in aca ofa account area opened prior to the 30, Sepimber 2019, the hank sll eure ch ae ‘enifcation mumers to be provided ty al compas as 1 peconton forthe continued epeation of tht bank sacs Secon 13 of the CTT Actis hereby amended: 4) By inserting inthe opening paragraph of subsection @), after the phrase “sal be derma le derived fom” the words “or otleruise be trable a, Nigeria" 1b) Ensubsection (2) by inserting anew paragraph (as follows, and renumbering the existing faragraphs () and (d) as paragraphs (dl) ard) 6) fit transmits, emits or reeves signals, sounds esses, imgeso data of ay Kind by cable, ratio, kctromagacte ysis or anyother electronic or ies apparatus to Nigeria i respect of ary catty, including electronic commerce application sre, high frequency trang, electronic deta storge vrline adverts, participative nt platform, one eyes and soon, th extent thatthe con ln signifi! economic presenos in Nigeria and ft cn beatibutabl to such actcty, ©) By inserting anow paragraph () after parageaph (as ollowe (ifthe trae or business comprises the furnishing of ‘edict, mmagement, constancy ar poesional series ose of Nigeria ta person resent in Niger to the extent ha! he commpany as sgnfcat ‘ecanomie presence in Nigerian profit con be atezbulabe such acti. ‘To synchronise taayer oking od ax databses wit «view fo improving lax ‘compliance and ene of tax ‘aimnstation. This tl also Ip expand ie Tax Net in [Nigeria so for as atice ‘conorae entities are concerne, Toclose gaps inthe tax famesork arising fom forcgn “ents deriving incom from trang actos that ccc in the Nigeria fat “noironmen! Torespond the challenges of digital servis tax and expand lax revere sources Tocrnte a ners fr tation ofservices rendiedofsore and ensure Nigein ears is fir amount ofreene frome Such atts,surance Congres Proved that any witibotding tx pliable under tie ‘Sect 81 of his Act sal be th fl taxon the 4) By inserting a new subsection) as follows “(8 For the purpose of subsection 26) and (of Bis Seton, the Minister may by Order determine what otitis he significant econo presence of ‘omy ober tana Nigerian cong. Section 16 of the CIT Actis hereby amended as fellows: 2) inserting a new subparagraph (i) under Section 16Gb) 3 olows Gi) Inestment income forthe purpose of. ‘axation of 8 insurance company under this section means income dence ron investment of sheers fans.” 9 deleting the phrase“. and al ees, the period of earn forward als hl be ited our parsofasessnent” in Section 16(7) substituting the exiting paragraph a) of Section 168) with new paragrap (a), as follows ~ a) mesere for nespied rs clculeted on a tine apprtonnent basis the ris cep inte yea” 4) substituting the existing paragraph (of Section 16) with anew paragraph (a5 follows = “() for outstanding cans endoutoings, an amount ej the tot estinated runt fall xtsaning clas and outgoings uth lrther amount nprseting 10 por cent of te estinted fur for outanting dais espe of elas incr but not reported tthe end of the year ander reves, provided that ony arcu not wits foward setdonent of ais ana otgings ‘Jal be ied othe ttl proof the 9 Toensire that insurance companies are taxed ina fir fend eguiable meaner relative toothercompones operating ther stor of tie eeonoma These matifations remove oubl tax provisions and recoiserepulitry costs tat well be incre by sch compas in compliance wit ‘onions ines by the Insurance regulator eg. provision foroutstnding loins ‘These modifications have long {en sought bythe insurance Indsty an should encourage incest in he ecto, stimulate ecoromse growth and potently incre revenue from te scton,{lowing ear” ©) in subsection (9(0) by deleting the phrase: “excep ha er allowing forall outgoing and lance under the Secon Selle this ict as nay be restricted under the prvtsions of his Act for any yar ofasessment, na es than an mmaut eu to 20 percent of he gro ince hal be vale as total proto he compeny fr ax purposes” Payment of dividend $. Secon 19 ofthe CIT Actis hereby amended by bya Nigerian insating a new subsection (2) 2 lows Conpany "The provisions of subsection (2) ofthis section shal not sly to~ (a) Divides paid out of e reine earings ofa Toamond the excess dividend connpany, Proce that he dividends are paid) tx rules tat curently results cut of profit that haze ben subjected to tax double tsaton ad, under ths Act, the Petroleum Profits Tax Act, dicournges corporate ore Capital Gains Tax Act saingsretention of profs to improve incesto confience (0) Divideuls paid eu of profs tata exemped an encnumge FDI From income tax by any provision of thi ct, the ndustril Development (come Tex Relief) ‘ct, the Petroewr Profs Ta Act orth (Capital Gains Tax Actor ey ote bgisation; (6) profs or income of campy tha re regarded 1 ranked incestment ner der thie At, and 1) distributions made by 0 RealEstate investment Conuny tot tarot om rea scone su dcitend incor riod on elf of those sdareiolers eter such dividends re pd cut of pois ofthe yer in cohch th dipidend i declared or oof profits ‘af previous reporting prin" [Niger dividends 6, Section 20 of the CIT Acts hereby amended by ‘This eliminates the rpeion of recited by elon the existing paragraphs (b) and (), the provisions of Section 19 0f ryCITA now mfr by Seton compo oer dat [Nigerian companies Sof this Finance Bt Profs Exempted 7. Section 23) ofthe CIT Actis hereby amended by: (a) Repealing subsection (n) and replacing it withthe following new subsection a) as follows: Section 7 ofthe Penance Bill removes te caren ae "acting is ctinsal ecnsred teen fom pene oe erection of alco t sures, the i which company mating i assim Nigeria by payne iso det under sections 78, 79 7 BDof his exempting suck companies ‘ck sick that He provsonsof sections 78, 79end 8D of fom having to duct WET on ths Act sal ppl toa dividend nest, enor roelty siden they pay out. Te ly comp exeped roe tuner beter of eon 23 (0) 1) 20(€, 10, (0), (amd (of tis section —_#8,ferter mod to better reflect the intention ofthe (b) Repeating subsection (0) and replacing i ith he lacmakers to ceive BIT on lang nec subsection 0 as lous any dcdendsentuteresroyaty (0 "te profitsofasmacompany ix arco yar of lly comps exempted ascent” From eatin by ite at ‘ston Pride at such company stl without price teihs exemption comply eh he x agitation Seton 7 he Finance Bl nde etn lng putin of is Act aud bees proviesa general Suet he prxsins segs tne offing, extn fn earprtion tx eonles for racofstautny des anda oer frsmal comparesenraing prvi ofthis Act el resets daring the pened ler than N2Snalion thr which ts profs ae blo te tx paying ———‘tarnacer any te your. This threshold. sold be read conjunction wth Section of us Finance (G9 Divers received rom sul companies inthe Dl tha introdes te lief manuf sector inthe fst fve yrsf thir or medio compari that operations. sane tarver abone ‘25niltion but ss thar Nn00%ion icy tx yar, However, suck companies ul awe to det WET on ‘idendsdsibuted. (6) Induction ofa new sub-section () as follows n“ite itend and rental ncone received bya RealEstate Seton 7 ofthe Fiance Bil Inestent Company behalf ils sharehaiers also seks io unlck the ve provided hat: ‘nn potential of rel estte investment as a eset lass fo (0 A minimum of 75% of dividend and renal income is securitisation tn Nigeria Alisteuted: end Enabling cation of RECTS (i) Suc sib is made within 2 montis of ie end wlan ep create ft nance yar in which the dvidend or eal employment, sien te tax ‘come was ard, asad improve he Nigerian economy, [Noting in his eton shall construed to exempt (© Sareholdes fo tao the cividend or rental income rete froma Real Est Incesinent Fompany; (i Real Estate hestent Company from ton ingen, rots or any eric edo oud on its own acount ar (i Rex! Estate cestment Company from ton ide and rent income thai no sib fier 12 months fom the fence yearend in whi ie tend or rental income wa ean, (4) Subsituting the existing paragraph () under Sstcton ) with ollowing new paaprap a) as folows: the profits ofany Nigerian company in respect of _g00ds exported from Nigeria, provided hat the proces of such exports ar used fr the purchase of raz materials, plant, equipment and spare paris Provided that tx shal accrue proportionately on the portion of sue proces vi nent In the mer preseribed abo,” () tong nee paragraphs) (and (w) as follows ‘The intrauction ofthis sb (i) the compensating payments, which uty ax cto designed oreflct Be ivdends under ection BC) ofthis Ach rivet CORON ray ofa ergs fy Lender fom its approved agent ora Borrower suri lending ransacton ina Regulated Securities Lending Trosacton. order oensre ht tts Suck pymets stall ecemed oe Franke?” ‘vied onthe substance ofthe 2a Incesment Income and shal note abet o fioter tax he ends ofthe Lender (o) “the compensating pyments ch gua as viens ov interest under Seton 51) is ‘Act cic by an approved agen frm Borrower or London Peal Leder or Borrmwer na Regulated Securities Lending Transaction Dauctionslowed 8 Section 24 ofthe CIT Act is hereby amended 2) Introducing in the opening paragraph of Section 24 after the wor "in te proton of thos profs” the words “chargeable to tax” 2) By ee-eacting the existing paragraph a) as (Sujet he provision of the Seventh Shale of {his Ack any su py yy of interes on et terme ant employe as capil acpi he prftsofe company” 6} by inserting a subsection (k and () the following provisions “(vider or mandatory distributions made by @ Rea Estate Incestacnt Company duly spaced by he Seewrtes and Exchange Conon, 10s sharchalers™ “Qeorpensting peyments, which gual interest der section 91}) af us Act sade By Leer tits 'pproved agent ora Borrower a Regusted Secures leding Transaction” Deductions not 9, Section 27(1 ofthe CIT Act is hereby amended by: beet (a) deleting subsections (g (hand (and Inserting a new subsection (g) a fllows: (gy expense whatsoever incurred within outside Nigeria tong elated parties dein under the a transection and not onthe interooningseps required to clita such rade. Ths it ea to the ntraducton of ible mew asset category aad ‘he dexponng ofthe Nigerian capital matt Section 24 amends the CIT Act 1oclo ool curently uae companies deren exempt income tat then shift ther operating costs tthe port of tht sins tt produce lnxabe profits herby arty reducing Heir taxable profits ina mane not contemplate by the Lao Section 24 aso wks to deter profit shifing behviour Epealy ext by multinationals throug excessive interest expose ad, In eft, rset revenues‘Transr Pricing Regulations, excep to te ete that it ‘consistent a he Transfer Pricing Regulations” (0 letzoducing new subsections i), 6) ) and (k) asfolows “any expense incurred in deriving tax-exempt Te eliinat arbitrage at income, ose ofa xpi nature ad ay expense currently ess compres alone sa deduction under the Capitol Gains Tax paying less ees than they ‘At forthe purpose of determining chargeable gains” ondnarily ould “(any compensating rayrent rad by eBurrower, thich qualiesas censure section 91) of tis ‘At, fits approve agent ort Lender in a Regulate! Scowtes Erchange Transaction” “Gpany compensating payment made by am approved agent, which qualifies as intrest or deedends under sect 9), of his Act, to Borower or Lender ina Regulated Secures Exelange Transaction”. (any patty prescribe by in ny Act of the National Asem for Dilation of any she, any taxes or penalties Bons by a compny on behalf ‘ncter person Bis forcomputing 10. Secisn 29 the CTT Act is hereby amended as sssesable profits follows (@) The existing subsection I) is deleted and To simplify end eliminate the replaced witha new subsection (1) as folows: rikof dbl tation witch sts under he current (i) Swe es provided inthis section, the profits of commencement and essation ‘ny company foreach yar ofasessment fom such prisons and encourage source of ts profs hrcinator eired faethe investment, ssesuble profs) sal be the profs of the tccountng period nimeiaely preceding te year of ‘ssessment fom ea sch soe, (b) Section 29(8) of the CIT Acts hereby deleted tnd replaced with a neve subsaction (3) as tolows (The asessible profits ofany company fom any nde or business orn tense of company oer fh a Nigerian company) forts frst. yer ofcassessnnt ete ho fling yar of sessment (ich yrs ave tis subsection respectively rere os “te frst year”, “the second year” and “te tid gen") sal be scertmal i accondencr wth the falling provisions ~ (a) for te frst yn, the assessable profits sal be the profits fo le dite which comme fo carry on suc ae or busines in Nigeria oe end ofits frst accounting pri (for the eon yn, the assessable profits sal bo ‘he prot from the fost day ae its fist acounting evo fo the en oft send accounting pero; ond (corte third yar and fr each subsequent yer therapy, the sessale profs shal be the profits fro he day fer the accounting period just ede (€) Section 25() is deleted anc replaced witha new subsection (8) as follows (4) Ever a company permanently coses to cry on 1 trade or business (orn theese ofa company other than a Nigerian company, ernment cess fo cary aa trade ar busines in Niger ine accountng peri, is assessable profits thereon Sha be te eae of he profits fran the beginning of the accountng peri tothe die of cessation and ‘the tax here sal be payable wns monte from the dato essation, (@ By amending the opening provisions of the cexstng subsection (9) a fellows: "Where a trade or business cra om by acompny {ssold or tansfred ta Nigerian company fr the purpose of eter organisation of tt ted or ‘sins othe ranger of ts management 0 ‘Niger ancl amy asset employed in suc trade or busines is sda tase, ifthe Board satisfied that one company ha contro ever te oer cr both arcontraled by some ater person or ae 1 Toco the gap in het iw that alle cmpanies cary eu Fictions tx neutral business ‘eorgonzation. THis propos railalow increase i revenue eneration This Section proposes to close a gp tat current aloesTotal Profits froma Payment of Mini Ta (Gas Uttam (Drnsteant Opvetins) nenbers ofa mengnised group of companies and Fc been ofr a consssieperid aft ns 365 dys prio othe dat of organization, he Bord may its dicen diet a= By including a new proviso under afer the concluding paragraph of subsection (3) as follows: a Proved ao that fhe acgring company were to nate a subseuent disposal ofthe ast here ied with he sucoing 385 days ofr he date of transaction, any concession enjoyed der this subsection sal be rescinded ad the companies sal be tote site dint qu forthe concessions stipulated i this subsection a ate dat of nti reorganization.” U1, Section 31(2)(a)i) of the CIT Actis hereby amended by deleting the phrase “but suck deductions Sal no be rnd against the profit ofthe company ar the furte or fom the year of commencement of Such busines” 12 Section 3 of the CTT Acti hereby amended by: (@] Replacing the exiting subsection @) with the {allowing nev subsection (2) a) For the purposes of subsection (1) ofthis eton, ‘he inne ob levied ad pid shal be 05% of aoc of the company (hy etoting rndorenbsscton (3), the iting paragreph (b) and replacing witha new paragraph (b) follows: (©) acompony tht eam gross turmoverofles ho feet fee aon a heeled yf 18, Seton 39 ofthe CIT Acti hereby amended by: (a) Replacing existing paragraph (cin subsection (2) with the following new paragraph (e) 6 capa amdertaking restmctning activites to epic the Reverse frm te ‘a peyabl on their tmonscetions where they ae no truly elated partis that shu benefit from tac exempion for sodaing ‘he madifxtin also iscnurages compris fom nderiakg restructuring solely or the purpose of sooding tx wt recognising taal profis fom doing Toallow companies carry forward ses incurred the course of their business in a fit ‘rd eputable manner. The proposal wll improve Investors confidence To simplify and harmonise he inna be regime to promote fiscal equity while ensuring at goverment generals its fr shar of This i to discourage sumvevesiary extension ofthe Pioneer status by commencing lamortcing qualifying capitalexpenitares afer the pioneer “Capita llowencson qualifying expenditure pariod incurzed during the pencr pri shal fe madi ‘ech ofthe yas during whch the copy, chic ‘senguped in gos tiation (downstream ‘operation i pioee ero, such that ony tae veri don alu of he Qulifing Capita ‘Expert sale carred fran tthe post poner prod els, tht = (a allowance of 9 percent with 10 erent retention, for neestmet i plan ad machinery” (by Detetng the existing paragraph ()in subsection (1) (©) By inserting a new subsection 3) afer the ‘existing subsection (2) and renaming the existing subsection (3) as subsection), The new subssction (3 to read as Follows (0) This Section stall ot apply with respect to = (any campy that hs clan or wisest claim the incentives wnder the Dudas Develo (Ancome Tax Relig) Actin resect ofthe ame aif copia expense” 14 Section 40 of the CUT Act is hereby repealed and ‘placed with a new Section 40 a8 follows ‘The proposed amentiments “Thee sul be eid and pid fr each yor af Section 40 assent in eget of toll profs of every company, taxa follows. Inte cas of a= eliminates the redundant provisions is sdsection (2) (a) snl company, tax as provided under Section ad (3) on exes profit tex 2L(oof ts Act and, subsections (2) and (5) 00 (8) meine company, ta tthe rate of twenty preincorporation ley. ol fr every nar; and (large company, x the rate of thily abo for = replaces the existing cry mai.” provisions contained in ‘subsections (7) (8) ad 9) on ”reduc a rate for small inanuficturing companies ie ther ist four years wt more abs nent ‘pplcble tall SMEs; and «reps subsections (10) and (1), which nee dpiaton sina incentce provisions ‘contained in Section 32 fe cract Supports goserment's Initiative fo foster growth of (MSMES in Niger Replacement of 15, Secon 1 oftheCTT Actis hereby ropealed by this Eliminalesredundent cbse plant and Act. provisions om inestnent uchinery sllowence Diniends and tax 16. Section 43 ofthe CIT Act is hereby repealed by this Toelninatecompler oninterim dividends Act provisions om interi iden pu by Nigerian tx, which are both impractical omnes ‘fo mplement end onerous taxpayers SdfAssessment of 17, Section 53(l ofthe CIT Actis hereby amended as te pynble follows: (0 Exery company nga return under section 5S of Toeliinate agin peynent of this Actor requested by notice ofthe Board to flea” ‘axes and ensure gorcrmment ‘rt under section 58 of hi Act shal. collects taxes quikly and (a)in the return compute the tx payable by the ‘ffcintly company forthe yer of ssessren: nd (ay ora wit he tx return, even of payrent of the rol or, in the case of company mang instdment payments, part of the ta he Returns end 1B, Section 5 of the CIT Actis hereby amended as Provisional, fellows: ‘Accounts (a) By amending paragraph (¢) under subsection 1as fotows: 1sevidence of payment of th woe rin he ese of To incr the penalty for non ‘company making instalment payment, art ofthe compliance wi CIT fling ede.” nrements (8) By amending subsection 3 as follows: 0) Any company whith fis to comply wit the provisions subsection (2 sl be ef pry a peal forte fling. (6) 80.000 for th fis mnt ic he fare ccs and (@) 25,00 for enh subsequent mont whi the fre contin. Tine within which 19. Sacion77of the CTT Acts hereby amended as taxis to be pid fellows: () By seeing the extn subsection 1 and renuberingsubactons@) 0) as ‘chsectons (10 P) Torepe ol ection on prov econ nrauce 0) By dektingthe exiting provisions Secon nents fla of 77S) and replacing ws flows tender crt fessor francis (0 Every Cnn hal ae pment of tx eet fen ystems or orb iteafieg merely, eClcton sim anes Proved that, where the exper pays in instants = 14 The txpmye sal frst rte ith idence of yon ofthe fist instalment and obtain tie ‘appre f the Serie to pay in suc mabe ofistlmentsas racy be approved by the Service ‘The ial instalment mast be pid oor bre the due deo Fling. (© By invoducing new subsections after the texsting subsection 5 (now renumbered a8 4) as follows: 1sDaduetion of tx on Interest Deduction of x on tien (5) Where company ys its tax 90 days bere the he dat as provided tinder Section 55 o hs Ac, sch company sal be tte boas of (2) 2% ifsc company isa mediumsant company and © 1% forany otter company, othe arm of tox pid, hick shal be wile asa cre against oft fore aes. ‘9) Any belenceof tes ung as athe die date shal attract interest and pont as provi in his ‘Actor any oer reo aw for fare fo py on the ‘ue ein conan,” 29, Secon 78 ofthe CIT Act is hereby amended by inserting a neve subsection (6) a follows “the provisions contingd in subsection (1) tS) ofthis Totinulat growth ofthe rec Section shall not apply to Lender who making estate sector trough cpa compensating payment which quay as nerest der murat atotes ‘ection (1) ofthis Ac foam approved agent tts due toa Borrower ina Regulated Securities Lending Tranction Noting inthis subsection, shall be constructs exempting th aproved agent frm the provisions of subst (1) ) wher making the sare payment 0 the Boner or as exnping the Lender from deducting tax when miking the payments directly to the Borie” 21, Section 80 is hereby amended as follows 2) By inserting ae suheortion (5) the fllowing Topromot capita maret provisions sxtite. “G) Te provisions contained n subsection (1) 10 (5) of 1s Seton sal ot ep a) company or person making ey aistution or dividend payment toa Real Estat cestinent Company; 20Datuton of tx of Interpretation (0) Boroner making compensating payments to ts approved agent ort. Lender, povided th sch payments gua as dividends under sction 901) of his Act (an approved agent making compenseting yrds resioed froma Borrower, which ua cident under section IDV) ofthis At to ender, Nothing this ection shoul be construed to exempt RealEstate Inesient Compy fom ‘educting tx at ure from the dividend it struts its on sharers” 22, Section BI of the CIT Acts hereby amended by introducing anew paragraph (9) a follows Topromot capita market (8) The provisions ofthis section sill otapply toate. compensating payers rade under a Registered ‘Securities Landing Tonscton” 23, Section 1051) ofthe CTT Actis hereby amended as fellows: ‘To ncudedfintions for new terms introdaced wn the cr Act. Deleting the definition of "Board” and defining the tera “Service” as follows, “Service” moans the Federal inland Revenue Service as tne in he Federal Inland Revere Service (stolsent) Ac, 2007 »b, Roplacing al referenoes to “the Bown” the CIT Act with "the Serice” «Proving a definition fr the following terms: “Approced Agent” memes any person approved by the Securities ard Excunge Commision ofton a Intermediary or he cout ofa Ruled Securities ending Transaction “Bank” mess an estalistenteutorzed by the _gonemimenttoncept depos, pay interest, ler chcks, ‘mae lois, act asa inerneiny in racial aeansactions, nd prove oter financial series ots stoners or any oer such institution as defined under eBanking and Otier Financial Insitutions Ac. “Banking” means business conducts or services offied yn Bank “Borrower” means an approved Borower i & Regulated Securities Lending Transaction ‘Compensating Payments" means any pryments rade feof teen or dviend prs fo Regulated Sscurtes Lending Transaction “Gross tumover” means the goss ino ofesoonic benefits (ns, viable, othe assets) arising fram he ondary opsrating atts ofa company éncludlg sas of gods, supply of seraces recep of interest, reas retisodidens. “Large company’ meons any company whichis not small or medixesized company, “Lender” means mn pprove lender ina Regulated Securities Lending Transaction “Mediuonesced company” meas a company tat ams gros turnover greater than 925 00,000 but ss tar ¥700,000,000; “Real Estate broestment Company” means or the pups ofthis Ace, Company duly approve bythe Seowrises nd Excharge Conmision topes as 2 Rea Estate Inestnt Scheme in Nigeria “Recognised group of companies” weans a group of companies as prescribed under the relat accounting Stardant” “Regulated Securities Lending transaction” means any Securities lending ransacton condeced pursuant to rales ma by the Securities end Excenge CConmssion rom tne ote” “Smal company” rors a company Hat earns gross turer of 825,000,009 oF Bess 2‘Thi Schedule (CIT) 24, The Third Schedule ofthe CTT Act on “Tx exemption on corkin interests isereby amended as: ‘3. Updating the table of ta exemption on interast on foreign loans a fellows Toclose tx exemption lophole ‘for foi loans acd increase ‘cen oneron prospet Repayment pe Period Z Frteling Merlot Faempton Moratortn — Above 7 years Notlessthan2 70% years S7years —-Notbessthan 40% 1Smonths 2ayenrs ——Notlessthan 10% Tmonthe Slow 2years Nil Nil b By introducing a new paragraph 2an interpretation section as follows: “For the purpose ofthis Schedule: “Moratorium” means paid atthe beginning ofa lao trm suring which he brower snot expected to make any principal or interes reyes, Poi hat where any principal o interest repayments are mai ing the period, te tx ‘onptons provided under this Schedles be juste hy the Sere va proportional naar “Repayment Period meas the gre tor ofthe owt flit, Provided beret lon seid bore expt of his period, the lax exemptions provided tuner tis Seda hal beads bythe Serace {na proportionate manner Seventh Schedule - 25, Introvlucing a new Schedule after the Sixth Schedule To inde thin capitalisation Delete razest as olows: rales tht preven! prot Shifting and potentially (A) Notithstonding any provisions ofthis Act, tere n incense tax recemues [Nigerian copay ora ied tas foreign company in Nigeria, incurs any expenditure by ay of lntoest or of sinilar nature in respt of et sued nya foreign connated person, te exces interest athereon shal ea sliobledeacton forte Purpose ofthis Act (2) For the purposes of subsection (D), th excess interest shall mez x rou of total interest pido aseble ‘neces of thirty per cent GO%)oferrnngs before Interest, taxes, depreciation and amortisation of the Nigeria conpanty in that accountng period. (©) Nothing contained in sub-section (1) sal apply toa ‘Nigerian subir of foreign company which is, emgage inthe sins of boing or insurance, (4) Where forany esse year, he intrest ‘spenditare i mot wholly deduced aginst income 0 much of th interesexpenditr as has nt been educa be sri fora othe wing sessment year or assessnen ys and if hal fe lowed asa deduction again the pros ifemy of ‘ay business carried om by i and asesible or at ‘aeesanent year to the extent port i acondence tot subse (2 roid that no interest expenditure shal be cried fersand under this subsection for ror than fe 5) ‘sesame years imal sce the ‘sessment year for ahh the exces invest expenditures fst computed. (6) Ary person sho vals the provisions ofthis Section sil be liale toa pealty ot 10% and interest a ie ‘esta ak of Nigeria monetary policy rt plus read tobe determine bythe Minister on any safnstmants made by dhe Sere rlting to excess inerest charged in any yor (6) Fo the purposes ofthis section, the expressions (0. “evnmeced persis shal mean; 4) any person contra by or wndercomtnon ‘contol oonership or nagement oF 1 ay person who m0 connected but receives ‘plicit o exp guarantor deposit’ {fr the provision ofconespending or matching dbo ©) amy related party es described under the aRestrictions on ft oft Persoel frome Tax Actend ier Als Perons to whom tax isto impo Deductions lowed Personal rolefand rie for chile, Apert Injemation tbe cred by bers [Nigerian Transfer Pricing Regulations 2018, (i) “debt means any loan, financial instrument, i oe et rey Crepe dps sees oro ge Dat dei he Soap cbt “Papen pine pc Petrotewn Profit Tax 26, Section 60 of the Petroleum Profits Tax Actishereby To sue dividend pid repealed. out ofpetoleum profits are subject tihng te. Personal Income Tax 27, Sections 2 (2), 49(1) 86 (240) & (), 1020), 104 3) ) (@ anc 108 (ofthe Personal Income Tax Act Cap. 5, Laws of the Federation of Nigeria 2004 a8 Toharnnie the smended (inthis Act refered toas a PIT Ac’) prvisousof tle PITA end aeamended by substiting the words “ie Fedend the FIRS Exelishnert Bord offen Revere” with te eter land Act Renenue Serie” where they appear 28, Section 21) of the PIT Act is amended by insesing full stop aftor dhe word “scheme” on the second. lin of paragraph g. and deleting the remainder of the paragraph and proviso, 28, Section 33 ofthe PIT Actis amended by deleting section 3309), 46) 30, Section 49 ofthe PIT Act is hereby amended by Introducing # new subsection (1) and requmbering theensting subsection (1) to (4) as) t0 (3). The new subsection 1 shall ead as follows: (1) Ener person engage in bing shal requ dha a person inning toopen a bank account fo te purposes fs business operons ust proie a ax dentifention 5umber asa precondition for pening such ark account rcentinad operation of hak ccm avon inthe ase 3, Secton 58 ofthe PIT Act is amended by inserting To prove and enone tax oftmejection immediately after the words “in writing” in line? admanisrationeffciency ‘withthe words “delivered in person, by courier server or via eleetonic mail” Penalty for fitoe to 32. Sacto 74 of the PIT Actis amended by replacing the To prove fox administration elect te words “ection 69,70, 71 or 72" with the words and efficiency by enforcing “estima 69, 7,71, 72or 73" mates for flare Thin Schale 33, The Third Schedule tothe PIT Actis amended by: To reform theta laws by (6) deleting the following provisions: eliminating redundant () the phrase “under the authority of the provisions Railway Loan (international Bank) Act from paragraph 61)0); (@ thephrase “on or after 1 January 1900" from paragraph7; (Gi). Paragraph 10,15, 19,20, and 24 (iv) The proviso to Paragraph 18; and » Interpretation (PET) 34, Section 108(1) ofthe PIT Actis hereby amended as To provide ditions for kay follows terms in the PIT Act. (@)deleting the definition of “Board” and defining he term “Seca” as falls “Serie” mocans the “Federal inland Revenue Service as defined in te Federal inland Revere Service (Establishment) Act, 2007" (OyReplacing all eferences to “the Borin the PIT ‘et ith "the Sere", Pat Indirect Tax Value Added Ta 2%“Tasable gootsand Rateofine Registration ard skrgistration regents 135, Section of the Value Added Tax Act, Cap VI, Laws ofthe Federation of Nigeria 2004 (inthis Bill, referred toas “the VAT Act") is hereby rezoacted as follows: The tn shall be charged and payee onthe supply of all goods and seruzs i Nigeria other tc tose sed the First Schedule this Act For tie purse ofthis Act, goods and serices sabe deme oe supplied in Dein ft (0) erect of gots: 1+ the goods are pysicly present Nigeria atthe ‘ine of supply, imported ina Nigeria fous by “person, assed in Nigeria, stalled Niger or the nein oumer ofthe rigs nor oer the goods su table person i Nigeria andthe 20s or right there is sot registered or ‘exerci tn Nigeria. 0) In espect of soe 4+ the services re rene in Nigeria by a person Physically present i Nigeria ete tne of sertce precision: oF 1+ the series are provided tm person in Nigeria, regards whether theses ae rendered aor ouside Nigeria 36, Section is hereby amended by substituting “S per cont” with "75 percent” 47, Section of the VAT Actis hereby amended as follows: (1) A tbl person shal apo conomencement of sine git withthe Service forthe purpose of etx ” Toca and expan te sco of VAT. This al potently re recenuesas more VAT streans ope-up. ‘To ncrense VAT rate thay goverment generat atonal eens to fur the bet(0) A txatie person cho fi or refses to register tut he Service within the tine seed n subsection (1) ofthis sction sal be ible to pay as poally an amunt of (0) $50,000 forthe rst mont wi re ceurs and (©) N25 000 for onch subsequent month in which the falar continues. (©) ‘Miereatexale person permonely ceases tcary on 1 td ruses in Nigeria, the txabeporson sal notify the Sroee ofits iention to deregister for ax purposes ota 93 days of suck esa ofthe trade or sins.” Registration by non- 38, Secon 10 ofthe VAT Act is renamed “Non-resident resident companies comwanies to include the taxon its invoices” and te enacted as fll A noresien company santa te nts novice for the supply oft series ud 1) the person to whom the seruces are supplied in Nigeria tall wit andr te tas dirty the Srvc inthe currency of payment. ©) Where a person to whom taxable supplies is ade in igeniasssued en raoie oki no ai ied, sch a person shal ef acoant forthe tax yale ond reat he output tax othe Sere ith th timeline prescribed wer Section 15 of this Act. ‘Tanabe person fo. 38, Section 15 (1) repealed and replaced with the render etiras following provisions: “A thle person mh i He cour of busines as mae dnxable suppl or expects to make eal Supplies, the eal of which either _Sngulaly or canmulately i any clear yea, is tent fioe flion Nia (N25 000,000 or 28 Toenfrce tax compliance by ‘nara pny ren Toaise revenues by ensuring a series provided by NRC sr reviewed for VAT. Tosti lc! les with global best prctic by introductg@ ‘yesh tat protect he most uluorable from exposure lo var. Thisis abe tserceasa palltie measure t cushion ‘the impact ofan ineease in VAT rates on the population.sil reer tthe Servic on or bore te 21 ly ofevery month in chs esha is steed and on or bfore the seme day in sucesive months href, arturo the “np xpi and utp exceed by kin fn the preceding month suck a mer the ‘Serie may foe tn one preset (2) Ie cetersning whether «person meets tie ives in (20) above, teva the {llowing tele supplies sll be excluded — (i) teal supply of capital aset of the persnand (@)a trae supply made solely asa ansequence ofthe person sling be whole ora pit ofits business o permanently cessing to ‘nyo business. Provided tat any person dat des no fal ot the nesta in Seton 15(2) aoc shal be exer frm he provisions of Section (2,134, 29,34 and 33 ofthis Ack.” Remission oftax 40, Section 16 ofthe VAT Actis hersby amended as follows: (0) A tasabie perso shalom rering returner subsection 1) fection 15 ofthis Act = 2) fhe output collected exceeds the input tx pi, smith excess othe Boa 1) ifthe input tox pid exceeds te output ax ole brent toutize te exces trace against subsegusnt mont. Proved that te taxable person mould be entitled toa refi fom te Serie of excess tx not wba cet upon procson of suck bcumente asthe Serve nay from tne o tine, eure feet of non 41, Section 19 of the VAT Actishereby amended as ‘To harmonise pats for reattonce follows: VAT non-compliance withthe penalty for norceompiance (0) If taxable person des not emit thet within the with CIT a the penalty time specified in section 15 of his Acta sun equal to 10. prescribed under he FIRS percent of he ax not remitted per anomie an ineest at Esalishinent Act ‘he prevating Centra Banko igera mann re- isc ote psa Sprend to be determined bythe 9iter, sl beaded to the x not emit aed he proisons ofthis Act lating tcllecton and vecocry of ‘rete tox, penalty end vest Sal ely. (2) Te Serie should notify the taxable person his gen ofthe tx due together withthe orally ad interest ‘ndifpaymen snot mde the thy dys of sh otfcation, te Board my proc to expr payment as provided insti 150 the Act.” Value Added Tax 42. Pac IV Sections 21 1924) ofthe VAT Acts hereby To delete redundant provisions Tecknicl Commitee doleted Jurisiction over VAT tsi ‘he Tax appeal abun. Faure tonotifyof 49. Secton28 ofthe VAT Actis renamed “Pau to Toenfoce VAT complionce hy change of adres roti of chang of address or permanent cestatin of trade raising penalties ete borbesisee” and hereby re-enacted a follows A txabl person oh ils to ratify he Sovice of any chatge of adress within 30 days of uc change, oF who “fas to comply with he requirement fr notation of bpemanent esaton of rade business under Section 8 of is Ach, sible fo py = () %50,000 or theft month in whi falar occurs; and (8) 825.000 foreach subsequent month i ‘ohh he fre continues Foluve to register 44, Section 32 ofthe VAT Actisheseby repealed Falure to submit 45, Socton 35 of the VAT Acts hereby amended as retires follows ‘Toenforce VAT conpliance by fneresing the pal for (a5).A taxable prion who filet ebmit returns ote felt. Serie islabe «fine of MSO, 00 inthe month of defeat ‘and 25,00 for ery ran in ack te deel contre.” Susiness soldor 46, The VAT Acti amended by inserting the following To clos the tx lophae on rasered nw Section 42 immediately after the existing Section lated pty bnsiness M1 ofthe Ac. organtations Simla provisions discussed und e CIT Act (42) Whereatadeor busines cared on by company Is soldo transfered toa Nigerian company forthe ures of eter organisation of tat trade x0Interpretation wan busines the transfer oftis managoment fo [Nigeria end any ast eployed in such rade or rusies ico r transfered, no ta sal apy ua tis Act lo ie slo tamer the sfrementionad assets to Be extn hat one omy Bas contra ovr the other or Both axe controlled ky se oter pers orare members of recognised group afennpaics and ave been 0 fir ‘a consocute period oft least 365 dys pir toe ato rorgoization Procited aso thet fhe cing company wor 10 mak a subsegunt disposal ofthat thereby ange wih he suczding 365 days afer the dat of transaction, any concessions enjoyed ner ts sabsoction shal be escindedadhe companis shal by rate if yd mot qualify forthe ‘concessions stipulated inthis subsection a the at of itil organisation.” 47, Section 46cf the VAT Actishersby amended as Pros ditions for terms fellows: inthe VAT Ac that were titherto not provided for orf (a) deleting the definition of “Bom” and defining, itherto provided for, were the term “Sercze as fellows: smbiguos ia vate “Serio” means the “Federal nla Revenue Service ss died in the Federal nla RezenteSerice (Establishment) Act, 2007" (by Replacing all eferences to “te Baa” in the VAT Act withthe Serie" (incu the definition of “Gon and “Series” as follows: Goode? means (a) al forms of tong properties that are mvebl nt epi of spp, but does not lnc money or scribe: ad (0) Any ixtngbie product, asst or property over ‘whi perso has owners or rights, or Frm wh dries bes, an wll can abe ramsfeme fom one perso toanther cexcuding intrest in ond “Services” means “anything other than goods, money or secre til is spplin excluding series provided wuer a contract ofemplonent™ (@) Deleting the defritin of “imported serves” (© substituting the curzent provision on “exported sarvico” with the following provision "Exported service" means ‘x serice rended iti, or outside Nigeria by a person resident in Nigeria fo ers resident outst Nigeria. Provide howecer, that a seoce povided to the fied ‘ase or permanent establishment of non-resident ern Sal no qualify as exported sees” (0) including the defirition of “commencement of Isinese as follows Busines sl be deme fo commence in Nigeria on ‘he dete tat am entity eres is ist nasa ton hich shal ete earls of he tet begin fo ake or irst verte its products or sroces for sie or he date i obtain an opening licens from regulatory authority in Nigeria othe date ofits frst ssleor purchase, oF th dete it eecutes its ist trading contract afer incorporation, ore date tissues or reeves is first iio he dt it delivers or nies fist consignment of goods, te date it fist reners services tits customers.” Food items” as ) lrcluding definition for” lows “Basic Food Items” means agro and aqua based stale ood described Aiditioes.honey whether naw ose processed Bead (ute and Brox), 2Cereals eg. maize, rice when, mile, bre, sorghum, cts, fora fner mile and others ofthe ‘ame kind, hover spied in such fr as grin, four, cop, bulk or ret. Raw sm processed. Cooking ois vg. egeate i soy of, pal oi ground osha biter, beni lo, ‘tconut onthe the sane hind Provided tat they ere afa type an grade suitable calinery purposes wud donot contain any substance suas perme tat wel make ten usta or caicary Culinary herbs cary, tyme onions, ginger mn ont ters of ie sare kind, re ard lnpracssed fu consti, Fish ofall ins other tha ornamental wheter ine, Fresh, frozen, smoked or dred. Flour and Starcheg cor flour, plantain four, esa flow, Beans flow, wheat flow, ie four, yam flowy, gerriand othr fi sme Kn Either ‘leached or unbleached, refed on wnfived provided that itis suitable for culinary purposes Praitseg,pinappes,omnges, mangoes, guaras grapes fri, onan, pupa ad bers of sme Kin eet it soso dried Live orraw Meat and Poultry eg. ber, gon lan pork, chicken, ar othesof the same kind, whether ve, butchered. compet, ports, fos, rae, eggs sd thers ofthe some id. Milk heer res, Tigi ad poudeed mil Nutse.g. ground, alu, cashew mu, hacer, olan gern, coconut and ater ofthe sane Ain, if and unprocessed for human consurption. ‘Also ase, fed, bed, sed ori hi sl, Pulse eg beans, lenis, peas, chips, tamarind and others ofthe seme an, ifaw an unprocessed {for kuna consurption. Alo rose, fe, bed salted or in ther sels 2Fst Schedule wan Roots eg yan, coco, sweet & rsh pottoes, aera, casio anothers ofthe some nd. raw and urpracessed form. sain for of faksor flour fer ura consungtin Salt forculinary us only including ine sal end in etal packs ut excluding industri at Vegetables eg pepper, melons, lltuce, obo cabs cro and others fhe sein, wether fs, tried or ground. Water. natn water and tble water. spring tau, rainwater, pipe bores wake, wel ter ant lnaturl water of he ane Kd. ll ble water oer tha sparking or flared iar (0) tnctingmdefition for “Recognised group of ompanies” a flows Recogisel group of companies ras “group of companies as prescribed ner the relevant accounting stad” (i) incluting definition for “taxable supplies” as plows: “mans any traction forsale of goes othe performances ofa service, fora considera tn ‘noneyor money's worth” 48, The Fist Schedule of the VAT Acts hereby Palliative mesure or amended by: incensed VAT re (a) lnsoting the following items under Part ofthe Fast Schedule tothe VAT Act: “ocaly aafectured sanitary towels, pas or ‘ampons.” (6) Repealing ‘Services nndeed by Commaity Banks Pope's Banks and MorgageInsttuions' ancl replacing it with ‘Services rendered by Microfinance Beaks, People's Banks aed Mortgage stitutions” FaGoods Liakets 8, Erase Duty Exemptimoftrren 50, suis arising from Tokeers (0) Inserting immediatly after item 4 under Pat It of First Schedule to the VAT Act a new itm (8) a follows: (5) Tuition relating to arsery, pry, sandy ted eriery ection Customs anid Excise Duties art I, Section 21 ofthe Customs and Excise Tariff To iments ool Et. (Consolidation) Act, Cap C4, Laws ofthe praiuction Federation of Nigeria 2004 (i this Bil refereed to as “whe CET Act’ is amend by substiating the swords "Goods manicure Nigeria and specified in the Pf Schedule to ths Act shal be charged with duties feist the aes spi under te Dity Coburn the said Sek” wth “Cons imported a those anafactured in Niger aed specie hs Eth Schl this ct shal Be charged with tis ofecie atthe ates specif under the Dty Clune i te i Sede" Part Capital Gains Tax Suction 32 f the CGT Act is hereby renamed Business Reorganisation” and re-enacted as follows “Where a trade or busines cared on bys company is Toclose out loopholes tat solteriengrved to Nigerian conoy for the purpoes allows abuse of mated party ofbter organisation of that trade ar business he ronganizaton. transfer ts management to Nigeria and any asset plage uc reo business slo rnsfred, ats apply unde his Atte sale tans of ‘he formentonad acts ote een that oe company scant oer theater or both are conta by some oer person a are members ofa mongnsed group of onpanies and ac aon so fora consecutiv porod of at es 365 das prior tte date of reorganisation Proved als tai he acquiring company tet make se sbseqen disposal ofthe sets thereby cquined thin ‘he sueceaing 365 days afer the dat of ransaction, any 38cowessins enjoyed under his subsection shall rescinded de companies sal be rated asf thy ci nat qualify rth concessions stipulated inthis suseton as atthe dete of iia reorganisation. Personal Tjury 51, Seton 352) ofthe CGT Acts hereby amended as follows “Sus obtined by nay of compensation for bss sail rok however be chargeable gins, except where the fmt of sich compenstin or damages exceds ‘10.00,000. Interpetetion (CGT) $2. Section 46(1) ofthe CGT Actis hereby amended as follsws (a) deleting the defirition of “Board” and defining the term "Service as follows: “Serve” meacs te “Federal Inland Revenue Srvice ‘s efne n th Federal Eland Revenue Serie. (Establsiment) Act, 2007" (b) Replacing al references to “the Bam” in the CGT Ac with "ie Servi” (6) Introducing a dftsition for “Recognised group of companies” as follows “Recognised group of companies” esesns a group cf companies as prescribed under the relevant sxcountng standard” Stamp Daty Interpretation 453, Section of theStamp Duties Act is hereby amended Toamend ih existing (Stomp Duty) by ealacng the interpretation ofthe words, “stan”, provision ofthe stamp duty “Stange aud “struments follows ‘Actas it appli to electronic This is expected oly rase "stamp" mans an impressed patirn or markby mans revenue gevertion an ofa engraved or inked block dea ay dese stan or 36‘electronic stamp or an electronic nckrouledgemen for formalise the practices of the senting any duty or Banks “stamped” wih reerence instruments nd materi, sgplis to iasrurents and materi! imprese wth stamps by means ofan engraved or inked boc di, llesie stamps eae thereto as nell ao instants nd material digitally tagged with electronic stamp or atonal stomp ova electro recep. “Instrument” includes evry writen docu including lectrone docuret, Provisions todty 54 Saction 89 ofthe Stamp Duties Acts repealed and pom cpt substituted with anew Section 89 as Fallows (A) For the purpose of his Act, th expression “recip? Includes any note, meron, titng or loctonic scription hereby ny mone, or ary fil of exchenge or promissory note for mons is cknoaedged or expressed to ace ber reeled oF ‘posted pido whereby any deb or demand, orn port of debtor demands ackuotledge Ive een seed, satis, or isharged, or wc signifies or imports ny sch acknaledgement, nd whether the same or ino signed ith the ars of ony person. (2). Tie duly wpa receipt may be denoted by a diese stamp which s tobe ected by te person bye the receipt is gen Bie ices out of his hands or by a digital tg with tectonic stamp or any ackrocledgemento ty charged onan electronic transaction. 8) Nototistnng the provisions of the Stamp Duties Act, electronic cept oestrone transfer {or money deste in any bak o with ay ‘vk, on any typeof accu, Be acount or ld expressed to be rented ofthe person f whom ‘he set acount foro amounts fom Ten ‘Tous Nair (¥10000.0) upreards sal! sitet a singular ana oneof duly of he surf Fy Nara (¥50.00); provided that monies aid {nua o's oun aceon or trensfireeletrnicaly betwen accounts ofthe same one by the enerCertain forms of recip not dutale Sebel (Stomp Duties) within dhe sme Bak shall ote chargeable duty. (® Ary duty pid pursuant to subsections (1) to) el appli as. rei gins any duty plicable onan instrument denoted with and ahesie srg 58. Secon 90 ofthe Stamp Duties Actis hereby repealed. 456, TheSchedule tothe Stamp Duties is hereby amended To exempt sere transrs by: end pays made para t a Regia (@) eluding under the category of exempt cepts, Soeuities Lending sinew itemas follows: sation. “receipts given by any porson ina Regal Securities Lending Transaction carried out pursuant ‘regulation sed by the Secures ane Exchange {b) Including under the category of general ‘exemption from stamp duty new items (14, (15) Shares, stocks or securities tanger by a Lender fo cits approved agent ora Borower i farthrinc of Regulated Securities Lending Transaction"; “Shares, stocks or securities returned tou Lender oF sapproced agent by @ Borrower ix pursuant to. agulated Secirities Lending Transction” “all document relating to a Regulated Securities Lending Transition cared out pursuant ‘giao sued by the Secures at Eachange Commission” 2