Impacts of Recent Tax Reforms on Nigerian Capital Market
Explore the implications of recent tax reforms on the Nigerian capital market, including Executive Order No. 007 on road infrastructure development, group taxation, trading tax attributes, and upcoming legislations and regulations. Learn about opportunities for trading tax credits and the shift towards group taxation in Nigerian corporate taxation.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
RECENT TAX REFORMS IMPACTING ON THE NIGERIAN CAPITAL MARKET A Presentation at the 2019 1stCapital Market Committee (CMC) Meeting on 21stMarch 2019. by Federal Inland Revenue Service (FIRS)
EXECUTIVE ORDER No. 007 ROAD INFRASTRUCTURE DEVELOPMENT AND REFURBISHMENT INVESTMENT TAX CREDIT SCHEME The President, Federal Republic of Nigeria on 25 January, 2019, signed the Executive Order No. 007 on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme to provided private sector funding to Road infrastructures in Nigeria. The Executive Order 007 has some implication capable of enhancing trading activitiesin theNigeriancapitalmarket.
IMPACT OF EXECUTIVE ORDER 007 ON THE NIGERIAN CAPITAL MARKET Sale/Transfer of tax credit: Participants may sell or transfer the whole or part of its unutilized Tax Credit to any interested party, subject to complying with protocols prescribed in the Scheme. This means that a Participant, who for any reason does not wish to utilize its Tax Credit, may easily recover its investment without recourse to theFGN. Transfer/Trading of certificates: TheRoadInfrastructureTaxCredit (RITC) Certificate is transferable (traded in part or whole) as an instrumenton theStockExchange;
IMPACT OF EXECUTIVE ORDER 007 ON THE NIGERIAN CAPITAL MARKET Group Taxation and Trading tax attributes on the FMDQ OTC Securities Exchange Paragraph 4(4) of the RIDRITCS Order introduces the novel concept of Group Taxation into the Nigerian Corporate taxation by permitting any participant to transfer its Investment Tax Credit benefits to its parent, Subsidiary, Sister or any other company operating within its recognisedgroupcompanies. Similarly, Paragraph 4(5) allows participants or beneficiary companies to trade their Investment Tax Credit as tradable instruments on the FMDQ (OTC)SecuritiesExchange.
LEGISLATIONS AND REGULATIONS The Real Estate Investment Scheme (Taxation) Regulations, and the Islamic Non-Interest Finance (Taxation) Regulations. The Real Estate Investment Scheme (Taxation) Regulations and the Islamic Non-Interest Finance (Taxation) Regulations are both at the Federal Ministry of Justice awaiting publication in the Government Gazette.
