Dividends on oil proceeds will be taxed – FG

There is a move by the Federal Government to tax dividends paid from the profit of oil companies.

This is contained in the Finance Bill submitted by President Muhammadu Buhari which has now passed the second reading at the Senate.

The move was disclosed by Nigeria’s Finance Minister, Zainab Ahmed yesterday in a statement issued by her Special Adviser Media and Communication, Yunusa Abdullahi, according to the Punch.

 

”This bill seeks to improve revenue by removing the tax exemption granted for dividends or income received from companies charged under Petroleum Profits Tax Act.

“The bill contains some changes to the Companies Income Tax Act, Value Added Tax Act, Petroleum Profits Tax Act, Personal Income Tax Act, Capital Gains Tax Act, Customs and Excise Tariff  Act and Stamp Duties Act.  

“The bill also seeks to address the taxation of industries, such as insurance, start-ups and the capital markets, evaluated by the Federal Government as critical to the growth and development of the Nigerian economy with a view to stimulating activities in those sectors and fostering overall economic growth.

Ahmed noted that the bill would always be accompanied by finance bills to provide a suitable roadmap in achieving revenue projections. She explained that it would effectively solve the issue of individual income taxes in Nigeria.

she explained that the revision of the bill would include taxation of business combination as well as prevent abuse of any of the provisions of the act on group restructuring. She also added that bill would help the government generate extra revenue from stamp duties imposed on electronic transfers.

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