FG Releases 2016 Fiscal Policy Measures
The Federal Government of Nigeria has approved and ordered the immediate implementation of the 2016 fiscal policy measures (FPM).
Withholding Tax (WHT) rate on building and construction contracts reversed from 2.5% to 5%
The Minister of Finance has approved the reinstatement of Withholding Tax (WHT) rate of 5% on all aspects of building, construction and related activities. The approval was given via an official gazette dated 23 November 2016.
Senate proposes Bill to repeal and re-enact Customs and Excise Act
The Senate of the Federal Republic of Nigeria is currently considering a Bill to abolish the fifty-eight-year-old Customs & Excise Management Act (CEMA) and five other Customs & Excise Laws. The Bill which is currently at the committee stage of the legislative process, seeks to enact a new Customs and Excise Act to establish the Nigeria Customs Service and restructure the administration and management of customs and excise in Nigeria.
Importation of vehicles into Nigeria through land borders now prohibited
The Federal Government of Nigeria has banned the importation of cars through the land borders from 1 January 2017. This ban, which applies to both new and used vehicles, is aimed at curbing smuggling of vehicles, a vice which not only denies the government of revenue from import-related taxes, but also undermines several economic policies.
FIRS issues demand notices based on property valuation
In its drive to increase tax revenue generation, Federal Inland Revenue Service (FIRS) has started applying the value of property as a basis for assessing companies to income tax (CIT) rather than turnover basis of assessment. The FIRS recently issued notices to several companies demanding for payment of CIT assessed on this basis. The foregoing is a fall out of property valuation exercise carried out by FIRS in October, 2016.
Changing global tax regulations to impact the business
The “global tax reset” is spurring leaders at multinational companies to reassess not just how they approach tax issues-but is also transforming how they conduct their business.
Senate proposes suspension of ECOWAS ETLS and CET
The Senate of the Federal Republic of Nigeria, on Tuesday, 29 November 2016, passed a resolution, proposing the suspension of the Economic Community of West African States (ECOWAS) Trade Liberalization Scheme (ETLS) and Common External Tariff (CET).
Evidence of tax payment will soon become a prerequisite for issuing passports – FIRS
As part of the strategy to drive tax compliance, provision of tax clearance certificate (TCC) may soon become a prerequisite for issuance of National passport (what is commonly referred to as “international passport”). This is according to the statement credited to the Executive Chairman of the Federal Inland Revenue Service (FIRS) at the meeting of the Joint Tax Board (JTB) in Abuja, on Monday, 28 November 2016. This requirement is being planned to apply to both fresh applications and renewals of old passport.
FIRS releases new Transfer Pricing Forms
The Federal Inland Revenue Service (FIRS) has released updated Transfer Pricing (TP) Declaration and Disclosure Forms, which take effect from January 2017. The update by FIRS is aimed at improving disclosure and transparency by taxpayers in their TP Returns, as well as providing FIRS with better information for their use in conducting TP risk identification and assessment.
FIRS extends window for waiver of penalty and interest for members of NASME
Federal Inland Revenue Service (FIRS) on Friday, 25 November 2016, issued a public notice formalizing its extension of the tax amnesty window exclusively for members of the National Association of Small and Medium Enterprises (NASME). The new deadline date for members of NASME is 31 December 2016 and all applications for grant of waiver are to be submitted to FIRS, through the association.