The Federal Government of Nigeria (FGN) has gazetted the Finance Act, 2019 (the Act) which was signed into law on 13 January 2020.
As per the amendments proposed in the Finance Bill, which became an Act on Jan. 13, 2020 following provisions are updated:
- 1. Pension contributions no longer require the approval of the state revenue authorities to be tax-deductible.
- 2. Banks will require individuals intending to open bank accounts for the purpose of their personal business operations to provide Tax Identification Numbers (TIN) as a precondition for opening or continuing the operation of such bank accounts.
- 3. Emails are now accepted by the tax authorities as a formal channel of correspondence with taxpayers.
- 4. Child relief (N2,500 per child up to a maximum of 4) and dependent relief (N2,000 per dependent for a maximum of 2) have been deleted.
- 5. The conditions attached to tax exemption on gratuities have been removed. Therefore gratuities are now tax exempt.
- 6. Compensation received for loss of employment of up to ₦10million is exempted from Capital Gains Tax.