Under the Finance Act 2021, the rate of tax for tertiary education trust fund (or tertiary education tax) has now been increased from 2% of assessable profits to 2.5% of assessable profits of Nigerian companies.
Also, the payment window, in a situation where the Federal Inland Revenue Service serves a notice of assessment of this tax on a company, has now been reduced from 60 days to 30 days.
This is one of the most popular provisions of the Finance Act 2021 because it places an additional tax burden on taxpayers. Fortunately, this tax is only payable by the small percentage of Nigerian businesses which are registered / incorporated as companies.
Businesses registered as business names and small companies making below N25m per annum are still exempted from paying this tax.
For further enquiries, discussion, advisory or help around complying with these new laws, please send us an email via clients@vi-m.com. You will be able to access all our explanatory write-ups on each of the major changes to the laws, brought about by the Finance Act 2021 and the practical ways in which they will affect taxpayers going forward, under our website group link – https://www.vi-m/category/Finance-Act-2021.