Tax & Business Matters - Nigeria

Commissions on capital market transactions now VAT exempt

The Finance Minister has amended the list of “Services Exempt” from Value Added Tax (VAT) to include commissions on transactions in the Nigeria Capital Market. The Exemption Order is effective from 25 July 2014 and it is applicable for a period of 5 years from commencement.

See our publication below for further insights. I have also uploaded a copy of the Order for your reference.

Download PwC Tax Alert - VAT exemption on Capital Market Transactions_Oct 2014

Download Sock Market VAT Exemption Regulation

Nigeria could lose over 5 trillion Naira in tax revenue If the Bill seeking to compel private companies to become public entities is enacted into law

The proposed law to compel private companies to become public entities is disguised indigenisation particularly to foreign investors. The Bill, if enacted into law will not only be draconian but will also lead to significant tax revenue loss to government and certainly discourage existing and future investments in Nigeria by both domestic and foreign investors.

Read my article published yesterday in the Guardian and today in BusinessDay Newspapers. You may also download a copy of the Bill below.

Download Compulsory listing article_Oct 2014

Download Private listing Bills 

Interest rate for tax defaults now set at 15%

The Federal Inland Revenue Service (FIRS) has issued a notice regarding the administration of penalty and interest rates regime under the Companies Income Tax Act. According to the FIRS the aim of the public notice is to clarify and provide certainty on the applicable interest rate for late or non-payment of taxes. However, the notice may lack legal backing as it appears to amend clear provisions of the relevant laws.

Read our tax alert below for details.

Download PwC Tax Alert_FIRS Notice on Interest Rates

Download FIRS Public Notice on Interest Rate

October 2014 Tax Calendar

Happy Independence Day to everyone in Nigeria.

Please find below our tax calendar for the month.

Download Tax Calendar_October 2014