Page 50 - UUBO Deal Academy 2020 - Materials

Finance Act 2019 – Key changes impacting

PE investors

VAT on shares Minimum Tax Removal of Exported WHT exemption Foreign and
and other commencement services on foreign loans digital
intangibles Minimum tax at and cessation transactions
0.5% of gross rules The
Definition of goods turnover. Also, Commencement controversial Reduction of The Act provides
in the Act is the provision of and cessation definition of maximum tax for the taxation
expanded to having 25% of provisions have “exported exemption on of foreign
include assets or foreign equity been revised services” in interest on foreign companies
property over for exemption such that there VATA has been loans to 70% carrying out
which a person from minimum will be no redefined to digital
has ownership or tax has been overlapping basis remove transaction in
rights… removed period ambiguity Nigeria

No more
Sale/Purchase exemption from Eliminates Encourages E-commerce
double
consideration to minimum tax for taxation of cross-border The 100% transactions now
now include VAT foreign ownership/ same profits transactions exemption has taxable based on
Holdco structure.
charge Potential tax cost for new and aligns with been removed Significant
increase for businesses. global practice Economic
investors Presence
01