Finally you have reasons to become a Chartered Tax Practitioner,
the new financial bill is a door opener to your CITN career.
The New Financial Bill has the following strategic objectives:
• Promoting fiscal equity.
• Reforming domestic tax laws to align with global best practices.
• Introducing tax incentives for investments in infrastructure and capital markets.
• Supporting MSMEs.
• Raising revenues for government.
• Quite significantly, the Finance Bill seeks to introduce sweeping changes to the laws covering seven different tax laws. This publication examines the implications of the proposed changes on various sectors.
Below are some of the important details in the bill you should know about:
• Excess dividend tax to apply only to untaxed distributions other than profits specifically exempted from tax and franked investment income
• Small businesses with turnover less than N25m to be exempted from Companies Income Tax
• A lower CIT rate of 20% to apply to medium-sized companies with turnover between N25m and N100m
• Commencement and cessation rules modified to eliminate overlaps and gaps to avoid double taxation and complication during commencement
• 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
• 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
• Bonus of 2% of tax payable (medium-sized companies) and 1% for large companies for early payment of CIT
• Introduction of thin capitalization of 30% of EBITDA for interest deductibility. Any excess deduction can be carried forward for 5 years
• Deemed tax presence for non-residents with respect to imported technical and management services now taxable at a final WHT rate of 10%
• Any expense incurred to earn exempt income now specifically disallowed as a deduction against other taxable income
• Dividend distributed from petroleum profits now to suffer 10% withholding tax
But what has all the above got to do with your CITN career?
A lot, I mean a lot.
1. Every worker will now pay tax……………. Banks will now request for Tax Identification Number (TIN) before opening bank accounts for individuals, while existing account holders must provide their TIN to continue operating their accounts?….. It means your service is highly needed now.
2. Company must remit their tax before due date …………………. They need a certified Chartered Tax Practitioner to help the do this…. They need you.
3. CITN Professional Qualification is one of the pre-requisites for promotion to senior administrative cadre in the states Internal Revenue Service and the Federal Inland Revenue.
Don’t you think you now have enough reasons to become a Certified Chartered Tax Practitioner?
P.S: “Excuses will always be there for you. Opportunity won’t.”
“When opportunity presents itself, don’t be afraid to go after it.” …..Eddie Kennison
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