On 31 December 2020, Nigerian President Muhammadu Buhari assented to the 2020 Finance Act, giving it the force of law effective 1st January 2021.
The Finance Act 2020 (“The Act”) has introduced significant changes to Nigeria’s tax and regulatory landscape and clarifies some issues which caused controversy under the 2019 Finance Act.
The Act amends several provisions of Nigeria’s key tax legislation including the Capital Gains Tax Act, Companies Income Tax Act, Industrial Development (Income Tax Relief) Act, Personal Income Tax Act, Tertiary Education Trust Fund Act, Customs & Excise Tariff (Consolidation) Act, Value Added Tax Act and Federal Inland Revenue Service (Establishment) Act.
It also amends some other non-tax legislations such as Fiscal Responsibility Act, Public Procurement Act, Companies and Allied Matters Act, Nigerian Export Processing Zone Act and the Oil and Gas Export Processing Free Zone Act.
This article summarizes the significant changes introduced by The Act.