President Muhammadu Buhari has just signed the new Finance bill into law and this in essence brings quite a number of change into the Nigerian financial system.
Below are 5 things you should know about the new Finance bill:
With the new bill, Value-Added tax has now moved from 5% to 7.5% .
The bill also makes provision for companies with an annual turnover of less than N25 milion to be exempted from paying company income tax.
Thirdly, the threshold for stamp duty charged for online transactions from N1,000 which is the current benchmark to N10,000. This means that consumers will only pay stamp duty charge for transcations of N10,000 and above
Fourth, the law sought to amend the Petroleum Profit Tax Act, Customs and Excise Tariff Act, Company Income Tax Act, Personal Income Tax Act, Value Added Tax, Stamp Duties Act and the Capital Gains Tax.
Tweeting about the signing, the president said “I am pleased to announce that this morning I signed into law the Finance Bill, 2019,” a tweet on the president’s Twitter account read.
“We introduced the bill alongside the 2020 budget, to reform Nigeria’s tax laws to align with global best practices, support MSMEs in line with our Ease of Doing Business Reforms, incentivize investments in infrastructure and capital markets and raise government revenues.”
