{"id":39742,"date":"2020-01-14T09:26:04","date_gmt":"2020-01-14T09:26:04","guid":{"rendered":"http:\/\/localhost:8888\/cregital\/disha\/2020\/01\/14\/the-finance-bill-2019-a-summary-of-key-changes\/"},"modified":"2020-01-14T09:26:04","modified_gmt":"2020-01-14T09:26:04","slug":"the-finance-bill-2019-a-summary-of-key-changes","status":"publish","type":"post","link":"https:\/\/msmehub.org\/staging\/6671\/the-finance-bill-2019-a-summary-of-key-changes\/","title":{"rendered":"The Finance Bill 2019 – A Summary of Key Changes"},"content":{"rendered":"

The 2019 Finance Bill has recently been signed into law by President Buhari. Below are some of the important changes you should know about as collated by PWC. <\/p>\n

    \n
  1. Excess dividend tax to apply only to untaxed distributions other than profits specifically exempted from tax and franked investment income<\/li>\n
  2. Small businesses with turnover less than N25m to be exempted from Companies Income Tax<\/li>\n
  3. A lower CIT rate of 20% to apply to medium-sized companies with turnover between N25m and N100m<\/li>\n
  4. Commencement and cessation rules modified to eliminate overlaps and gaps to avoid double taxation and complication during commencement<\/li>\n
  5. Minimum tax provisions amended to 0.5% of turnover and exemption only applies to small companies (less than 25m turnover), so non-resident companies will now pay minimum tax<\/li>\n
  6. Insurance companies can now carry forward tax losses indefinitely, deduct reserve for unexpired risks on time apportionment bases while special minimum tax for insurance has been abolished<\/li>\n
  7. Bonus of 2% of tax payable (medium-sized companies) and 1% for large companies for early payment of CIT<\/li>\n
  8. Introduction of thin capitalisation of 30% of EBITDA for interest deductibility. Any excess deduction can be carried forward for 5 years<\/li>\n
  9. Deemed tax presence for non-residents with respect to imported technical and management services now taxable at a final WHT rate of 10%<\/li>\n
  10. Any expense incurred to earn exempt income now specifically disallowed as a deduction against other taxable income<\/li>\n
  11. Dividend distributed from petroleum profits now to attract 10% withholding tax<\/li>\n
  12. Banks to request for Tax Identification Number (TIN) before opening business bank accounts for individuals, while existing account holders must provide their TIN to continue operating their accounts<\/li>\n
  13. Email correspondences to be recognised for communicating with tax authorities<\/li>\n
  14. The meaning of supply and definition of goods and services has been expanded to cover intangible items other than land, among others<\/li>\n
  15. Specific requirement for VAT deregistration for discontinuing operations<\/li>\n
  16. Introduction of VAT reverse charge on imported services<\/li>\n
  17. VAT registration threshold of N25 million turnover in a calendar year to be introduced<\/li>\n
  18. Remittance of VAT now to be on cash basis, that is, difference between output VAT collected and input VAT paid in the preceding month<\/li>\n
  19. Compensation for loss of employment below N10m to be exempted from CGT<\/li>\n
  20. Stamp duty on bank transfer to apply only on amount from N10,000 and above. Transfers between the same owner’s accounts in the same bank also to be exempted<\/li>\n<\/ol>\n

    To read\/download a copy of the 2019 Finance Bill, click here<\/a><\/p>\n

    <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    The Finance Bill 2019 – A Summ…<\/p>\n","protected":false},"author":1202,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[377,376,378],"tags":[1075,1076,1074,605,1077,1078],"class_list":["post-39742","post","type-post","status-publish","format-standard","hentry","category-access-to-finance-reports","category-entrepreneurship-ecosystem-research-reports","category-msmes-research-reports","tag-articles","tag-finance-bill","tag-finance-bill-2019","tag-law","tag-pwc","tag-research-reports"],"yoast_head":"\nThe Finance Bill 2019 - 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