The Federal Inland Revenue Service (FIRS) recently issued a circular (FIRS Circular 2021/17) to clarify the changes introduced by the Finance Act 2020 with respect to the taxation of Real Estate Investment Companies (REICs) in Nigeria. This circular updates an earlier circular issued in April 2020 on the same subject, based on the Finance Act 2019.
One key point identified in our previous tax alert was the issue of subjecting undistributed income to CIT in the hands of the REIC. This has now been addressed by Finance Act 2020, as a REIC’s total dividend and rental income will be CIT exempt where specified conditions are met.
Find out more in the Tax Alert below: