development projects including those engaged in power generation, liquid
plants, fertilizer plants gas transmission and distribution pipelines
are to be taxed under the provision of Companies Income Tax Act and not
Petroleum Profit Tax Act.
incentives under gas utilization downstream operation in 1997 is to be
extended to industrial projects that use gas. The initial tax holiday
period is extended from 3 to 5 years.
transferred at 0% Petroleum Profit Tax and 0% Royalty. The investment
capital allowance is increased from 5% to 15%.
on loan for gas project is to be deductible provided that prior approval
is obtained from the Federal Ministry of Finance before taking the loan.
All dividends distributed during the tax holiday shall be tax free.
Investment in Research and Development
in Research and Development on improvement of Processes and products is
deductible from the income in the years that the money for such
investment has been spent. Such investments given a right for a
tax-deduction of 120%.
operating in the following areas:
Value Added Process
In-plant Training are eligible for tax holiday of 5 years.
with trade liberalization policy to attract foreign Investments into the
country, Nigerian has so far signed Double Taxation Agreement (DTA) with
Philippines And Poland. The Government has commenced negotiation with
Turkey, Russia, India, and Korea as well as other countries that have
indicated interest in entering tax treaties with Nigeria.
duty on local industries has been abolished.
FOREIGN EXCHANGE DEREGULATION POLICY
Exchange is freely obtainable on the Autonomous Foreign Exchange Market
(AFEM) subject to minimum documentation requirement.
Transactions in the Market shall be conducted in any convertible foreign
currency through the Authorized Dealers (commercial and merchant banks).
transactions conducted in the market include.
traveling and medical expenses
Remittances of profit, dividend, external borrowing and repayment of
external loans by the private sector, educational expenses, contract
services as well as leasing, charter, and/or outright purchase of
aircraft and Marine vessels.
for Currency Transaction
hold an Account: Any person, resident or non-Resident may hold an
account in Nigeria. Such account may be denominated in Naira or in
Import: Cash can be imported without limitation. However, a person who
imports currency in excess of USD 10,000 by cash and deposits such money
into the Domiciliary account with an authorized dealer, shall Only make
cash withdrawals from that account.
Transactions Prohibited in Cash: No person in Nigeria shall Make or
accept cash payment whether denominated in foreign currency or not for
the purchase and acquisition of: Landed properties; Securities
including, stocks shares, debentures and all forms of negotiable
instruments; Motor vehicles.
for Hotel Bill in Foreign Currency: Only hotels registered as Authorized
Buyers shall receive from foreign visitors payment of hotel bills in
foreign currency. However, payment of bills in foreign currency shall be
optional and at the discretion of the foreign visitors making the