Some of the important highlights of the Act are:
- Companies with gross turn over of not more than N25Million Naira in a year become fully exempt from Company Income Tax (CIT) and minimum Tax payments. This must be a big boost to small and medium scale Business.
- Tax rates for companies with turn over of between N25million – N100million has been cut down to 20% from 30%.
- The Act also introduced a Value Added Tax (VAT) compliance threshold of N25million albeit with an increased rate of 7% up from 5%
- N50 Stamp Duty charge previously applied on Electronic Funds Transfers or deposits of N1000.00 and above will now be charged on Electronic Funds Transfers or deposits of N10,000.00 and above.
- Tax Identification Number (TIN) will be required as a pre-condition to open or operate a bank account for business purpose.
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