CBN restricts dividend pay-out by banks
The apex bank, Central Bank of Nigeria (CBN), has issued new guidelines to all banks including Deposit Money Banks (DMBs) and Discount Houses (DHs), on internal capital generation and dividend pay-out ratio. The new guidelines, issued via a circular (the Circular) referenced BSD/DIR/GEN/LAB/11/002 and dated 31 January 2018, becomes effective immediately.
PenCom issues public notices on administration of Life Insurance Policy
The National Pension Commission (PenCom), on Wednesday, 14 February 2018, issued two-pronged notices to both employers and employees on the administration of life insurance policy. The public notices are meant to serve as a reminder to the earlier issued guidelines for life insurance policy by PenCom.
LIRS to automate collection of consumption tax using Electronic Revenue Assurance system
The Lagos State Internal Revenue Service (LIRS) has introduced an Electronic Revenue Assurance (ERA) system for the collection of consumption taxes from hotels, night clubs and event centres (hospitality outlets) in Lagos State.
Tax Planning: Is there any legal and moral benefit?
Business owners constantly seek avenues to eliminate unnecessary and avoidable costs with the aim of optimising profits. Thus, efficient business practices become paramount in minimizing expenses, the most worrisome being “tax expense”.
President Buhari signs Executive Order to promote local content
President Muhammadu Buhari, on Monday 5 February 2018, signed the ‘Executive Order 5 for Planning and Execution of Projects, Promotion of Nigerian Content in Contracts and Science, Engineering and Technology’ (the Order).
National Tax Policy Implementation Committee presents report on Tax Law Reforms
The National Tax Policy Implementation Committee (NTPIC or the Committee), on Friday 2 February 2018, presented its progress report on the review of tax laws and regulations, and proposed tax reforms to the Minister of Finance (MoF), Mrs. Kemi Adeosun.
Lagos State House of Assembly passes Land Use Charge Bill
The Lagos State House of Assembly, on Monday, 29 January 2018, passed the Land Use Charge Law, 2018 (LUCL). LUCL, with the Governor’s assent, will replace the extant Land Use Charge Law, No. 11 of 2001.
Nigeria signs double tax treaty with Spain into law
President Muhammadu Buhari, on Friday, 26 January 2018 assented to the Avoidance of Double Taxation Agreement between the Federal Republic of Nigeria and the Kingdom of Spain (Domestication and Enforcement) Act, 2018. The double tax agreement (DTA) between Nigeria and Spain had been awaiting ratification by the legislature for about nine years. The legislature commenced the process of ratifying the DTA with Spain in 2016, in line with the provisions of Section 12(1) of the Nigerian Constitution which precludes treaties from having the force of law until they have been enacted by the National Assembly. The ratified DTA was recently forwarded to the Executive for final assent. The Presidential assent of the DTA with Spain is a welcomed development given that there are quite a number of signed DTAs between Nigeria and other trade partners which are still pending ratification. It is expected that the DTA between Nigeria and Spain…
Nigerian legislation and its shades of gray – Value Added Tax
In the last two years and within 7 months apart, two divisions of the Tax Appeal Tribunal (TAT), in Abuja and Lagos, gave conflicting decisions on two cases with similar facts. The underlying issue for consideration was the applicability of Value Added Tax (VAT) is applicable on services rendered by a non-resident1 to a Nigerian company.
Nigeria issues the Income Tax (Country-by-Country Reporting) Regulations 2018
Nigeria has issued the Income Tax (Country-by-Country Reporting) Regulations 2018 (the CbCR Regulations). The Regulations are part of the implementation plans under Action 13 of OECD’s Base Erosion and Profit Shifting (BEPS) project.