Federal Government issues Official Gazette on Finance Act, 2019
The Federal Government has published the Finance Act, 2019 (“the Act”) in its Official Gazette No. 6, Vol.107 (“the Gazette”). The commencement date of the Act is 13 January 2020, being the date of its signature by President
Muhammadu Buhari, GCFR.

We have itemized 14 points Every SME Must Know and comply;
1. The VAT rate to increase from 5% to 7.5% and self-accounting would apply to SMEs that were exempted from VAT collection
2. Small businesses with turnover less than ₦25m will be exempted from Company Income Tax and there would not be subjected to minimum tax either.
3. Lower CIT rate of 20% will apply to medium-sized companies with a turnover between ₦25m and N100m.
4. Companies that make CIT payment on or before 90 days from the due date for filing will be entitled to a bonus of 1% (for large companies with turnover greater than N100m) or 2% (for medium-sized companies with a turnover between N25m and N100m).
5. Commencement and cessation rules have been modified to eliminate overlaps and gaps to avoid double taxation and complication during commencement.
6. The restriction of carry forward of tax losses has been amended such that tax losses can be carried forward indefinitely.
7. Companies must now pay their CIT liability on or before the due date of filing in one lump sum; or in instalments agreed with the FIRS with the last instalment paid on or before the filing due date.
8. VAT registration threshold of ₦25 million turnover in a calendar year to be introduced.
9. Penalties for failure to register will increase to ₦25,000 for the first month of default and ₦20,000 for each subsequent month.
10. The meaning of supply and definition of goods and services has been expanded to cover intangible items other than land, among others.
11. Remittance of VAT now to be on a cash basis, this later changed via finance act 2020
12. Banks to request for Tax Identification Number (TIN) before opening bank accounts, while existing account holders must provide their TIN to continue operating their accounts.
13. Stamp duty on bank transfer to apply only on the amount from ₦10,000 and above. Transfers between the same owner’s accounts in the same bank also to be exempted.
14. The scope for goods subject to excise duties based on the Customs Act now expanded to include “goods imported and those manufactured in Nigeria.

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