Page 51 - UUBO Deal Academy 2020 - Materials

Finance Act 2019 – Key changes impacting

PE investors (Cont’d)

Insurance
Securities business Petroleum Agricultural
lending operations REITS business Management fee
provision Revision of dividends
inhibitive rules for Special Companies involved Management fee
Several provisions insurance Dividends paid provisions have in agricultural no longer requires
have been companies, such out of petroleum been included production to enjoy ministerial
introduced into by as; losses can now operation to in the Act to up to 8 years tax approval.
be carried forward
the Act to support indefinitely, no now be subject support free period (5 years However, it must
securities lending more restriction of to withholding investment in initial + 3 additional be consistent with
transaction in deductible tax REITS years) the TP regulations
Nigeria expenses and
reserves

Reduction of tax Investment in Reduction in
Eliminates multiple payable by Increases tax Pass-through agricultural tax cost where
taxation on insurance cost of status for business to enjoy management
companies and
Securities lending increase in PAT investors in REITS created tax holiday for fee is
transactions for distribution E&P companies almost a decade consistent with

to investors TP regulations

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