Nigeria's Finance Act 2021

This amendment seems to be targeted at institutional and high networth investors given the threshold.

However, taken with other recent changes such as the expiration of the 10- Year corporate income tax exemption order on government and corporate bonds, and the previously expired VAT exemption Order on commissions on stock market transactions, the government seems to be rolling back some of the incentives available in the capital market.

This could increase the cost of raising capital especially for the private sector.

The reduction of the minimum tax rate from 0.5% to 0.25% of turnover (less franked investment income) will apply to any two consecutive accounting periods between 1 January 2019 and 31 December 2021 as may be chosen by the taxpayer.

This addresses previous ambiguities relating to the period covered by this incentive. However, the exemption will only be granted where the relevant returns are filed before the filing due dates.