The Federal Inland Revenue Service (FIRS) has issued a circular to clarify some of the changes to the Companies Income Tax Act (CITA) introduced by the Finance Act (FA) 2019.

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The circular provides clarifications on a number of changes including:

  1. Excess Dividends Tax
  2. CIT exemption for Small Companies
  3. Exemption of Export Proceeds
  4. Thin Capitalisation (Thin Cap) rules
  5. Expenses incurred in generating exempt income
  6. Taxes or penalties borne on behalf of another person
  7. Finance Act transition
  8. Minimum Tax
  9. Gas utilisation incentive
  10. Rate of tax
  11. Filing and payment of CIT
  12. WHT on construction contracts
  13. WHT relief for foreign loans

Our alert and a copy of the circular are below:

Download PwC Tax Alert_FIRS Finance Act Circular - Sundry changes to CITA

Download 2019 FA Information Circular_Sundry CITA Provisions

Originally published 14 May, 2020

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.