OECD Council approves the 2017 updates to OECD model tax convention
The Organisation for Economic Cooperation and Development (OECD), on 18 December 2017, released the 2017 edition of its Model Tax Convention on Income and Capital (MTC 2017). MTC 2017 is an update to the Model Tax Convention issued in 2014, and consolidates the changes resulting from the Base Erosion and Profits Shifting (BEPS) Project under the following action plans: • Action 2 (Neutralising the Effects of Hybrid Mismatch Arrangements) • Action 6 (Preventing the Granting of Treaty Benefits in Inappropriate Circumstances) • Action 7 (Preventing the Artificial Avoidance of Permanent Establishment Status) and • Action 14 (Making Dispute Resolution More Effective) While it is not binding on countries, OECD’s Model Tax Convention on Income and Capital provides clear modalities for taxing income and capital, with a view to eliminate double taxation in different jurisdictions. It is expected that MTC 2017 will be a basis for negotiating future bilateral tax treaties…
Tax policy on SMEs in Nigeria – How fair?
Small and medium enterprises (SMEs) are the bedrock of the Nigerian economy. They serve as an important source of employment generation, economic dynamism, competition and innovation; thus contributing to national growth and poverty alleviation.
NEPC calls for submission of baseline data for 2017 export ratings
The Nigerian Export Promotion Council (NEPC) has requested qualifying exporters to submit baseline data for the determination of export ratings for the 2017 fiscal year i.e., incentive rates applicable under the revised export expansion grant scheme (“the Revised EEG” or “the Scheme”). This follows a similar request made earlier in the year for submission of 2013 to 2016 baseline data.
Federal Government issues revised guidelines for Export Expansion Grant scheme
The Federal Government of Nigeria (FGN), vide the Nigerian Export Promotion Council (NEPC), recently issued the revised guidelines for operation of the Export Expansion Grant scheme (hereinafter referred to as “EEG” or “the Scheme”). This move follows the decision of the FGN to reintroduce the Scheme, which had been suspended since 2013.
PENCOM issues guidelines on withdrawals from voluntary contributions
The National Pension Commission (PENCOM) on 16 November 2017 issued a Circular to all Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) communicating new guidelines on withdrawals from voluntary pension contributions (VC). The new guideline, effective 1 December 2017, mandates compliance with the procedures by all licensed PFAs/PFCs or face sanctions from PENCOM.
NIPC launches compendium of investment incentives in Nigeria
Nigeria Investment Promotion Commission (NIPC) in collaboration with Federal Inland Revenue Service (FIRS), on Friday, 3 November 2017, published the first edition of the Compendium of Investment Incentives in Nigeria (the Compendium).
The latest business competitiveness ranking: How close is Nigeria to the Promised Land?
It is heartwarming to read the latest doing business report of the World Bank and Nigeria’s giant leap to 145th among 190 economies on the ease of doing business. Nigeria gained 24 places on the latest ranking, an improvement on the prior year’s ranking of 169, and exceeded the short term target of 20-place movement. According to the Report, Nigeria, alongside El Salvador, India, Malawi, Brunei Darussalam, Kosovo, Uzbekistan, Thailand, Zambia and Djibouti are the top 10 most improved countries on the ease of doing business index.
FG introduces infrastructure tax credit scheme through Road Trust Fund
The Federal Executive Council at its meeting on Thursday, 26 October 2017, approved the establishment of Road Trust Fund (RTF or the Scheme). RTF is conceptualized as a public private partnership (PPP) initiative by Federal Ministry of Finance (FMF) and Federal Ministry of Power, Works and Housing (FMPWH). The aim is to incentivize private sector participation in development of Federal road infrastructure through a tax credit scheme.
Fiscal opportunities of a restructured sports sector: Football as pilot (3)
There is a simple question that the Football Association in Nigeria must answer. It is that, “does Nigeria operate a league system that makes a football clubside self-sustaining and ultimately, profitable?”