The Finance Act: What Businesses in Nigeria Should Know
In this first series, we would be discussing the changes and innovations on a sector-by-sector basis as introduced by the Finance Act of 2020 (‘the Act’), which was signed into law on 31st December 2020 and came into effect on 1st January 2021.
The provisions of the Act had amendments to the Capital Gains Tax Act; Companies Income Tax Act; Industrial Development (Income Tax Relief) Act; Personal Income Tax Act; Tertiary Education Trust Fund (Establishment Etc) Act; Customs and Excise, Tariffs, etc. (Consolidation) Act; Value Added Tax (VAT) Act; Stamp Duties Act; Federal Inland Revenue Service (Establishment) Act; Nigerian Export Processing Zone Act; Oil and Gas Export Free Zone Act; Companies and Allied Matters Act; Fiscal Responsibility Act and Public Procurement Act (PPA).
The Act also established the Crisis Intervention Fund and Unclaimed Fund Trust Fund to respond to the Covid-19 pandemic. The Fund would be initially funded by an appropriation by the National Assembly in the sum of N500 Billion. The Fund shall be used to alleviate crises such as the Covid 19 pandemic and any other emergencies that could arise from time to time.