Tax & Business Matters - Nigeria

Highlights of Nigeria’s 2020 Budget of Sustaining Growth and Job Creation

Nigeria's President, Muhammadu Buhari today presented the 2020 Budget to the Joint Session of the National Assembly.

Highlights

• Non-debt recurrent expenditure includes N3.6 trillion for personnel and pension costs, an increase of N620.28 billion over 2019 for new minimum wage and proposals to improve remuneration and welfare of Police and Armed Forces.
• Increase of VAT rate from 5% to 7.5%.
• VAT registration threshold of N25 million annual turnover.
• Innovative borrowings using instruments such as Sukuk, Green Bonds and Diaspora Bonds
• Implement a single customs window, speeding up vessel and cargo handling and issuing more licenses to build modern terminals in existing ports, especially outside Lagos.
• Plan to present two Petroleum Industry Executive Bills to the National Assembly
• Re-present the Deep Offshore and Inland Basin Production Sharing Contract (Amendment) Bill 2018 not passed by the 8th National Assembly
• Key capital spending allocations include Works & Housing N262b; Power N127b; Transportation N123b; Universal Basic Education: N112b; Defence N100b; Education N48b; and Health N46b.
• introduction of a Finance Bill to amend the various tax laws to promote fiscal equity; reform domestic tax laws to align with global best practices; introduce tax incentives for investments in infrastructure and capital markets; support MSMEs; and raise revenues for Government.
• Expansion of VAT exemption items to include brown and white bread; milk etc

Read our Budget Bulletin below and the Budget breakdown as presented by the finance minister for more details:

Download PwC Bulletin_Nigeria's 2020 Budget Highlights_Oct2018

Download 2020 Budget Breakdown

FIRS to deploy e-filing platform for transfer pricing related returns

In 2017, the Federal Inland Revenue Service (FIRS) announced the introduction of six (6) new electronic services. One of the services was e-filing which enables taxpayers to file their returns on FIRS’ Integrated Tax Administration System (ITAS).

ITAS however did not include a module for the filing of transfer pricing (TP) related returns. To close this gap, the FIRS now plans to deploy a platform for e-filing of TP-related returns. At a recent FIRS-organized stakeholders’ forum, the FIRS demonstrated a beta version of the platform.

When deployed, the platform will have functionality for electronic filing of TP declaration, TP disclosure, Country-by-Country reporting notification and Country-by-Country Report.

Read our alert below for more information:

Download PwC Tax Alert_FIRS to introduce e-filing for TP returns_Oct2019