The Federal Government has proposed to grant tax relief to companies that donated to the COVID-19 relief fund under the private sector coalition, CACOVID.
The government also proposed the exemption of small companies from payment of education tax under the Tertiary Education Trust fund, TETFUND-companies with less than N25 million turnover are eligible.
This was proposed at the presentation of the Finance Bill 2020 on Thursday which was approved by the Federal Executive Council, FEC, to the National Economic Council, NEC.
The approved Finance Bill 2020 that was presented to the Governors is seeking to provide more tax incentives for Nigerian businesses and individuals.
A statement issued by the Senior Special Assistant to the President on Media and Publicity, Office of the Vice President, Laolu Akande, at the end of the virtual NEC meeting presided over by Vice President Yemi Osinbajo, at the Presidential Villa, Abuja highlighter some of the proposed bill which is being sent to the National Assembly as, “Reduction in duties on tractors from 35 to 10 percent, reduction in duties on motor vehicles for the transportation of goods from 35 to 10 per cent, reduction of levy on motor vehicles for the transportation of persons (cars) from 35 per cent to 5 per cent.
“Exemption of small companies from payment of education tax under the Tertiary Education Trust fund (TETFUND)-companies with less than N25m turnover are eligible.
“50 percent reduction in minimum tax; from 0.5 percent to 0.25 per cent for gross turnover for financial years ending between January 1, 2020 and December 31, 2021.
“Granting of tax relief to companies that donated to the COVID-19 relief fund under the private sector coalition (CACOVID).
“Clarification that only compensation for loss of office up to N10million would be tax exempt. (Clarification that it is the employer’s obligation to account for tax on payments relating to compensation for loss of office.
“Introduction of software acquisition as qualifying capital expenditure to improve the ease of doing business.”