Gains from disposal of shares of a Nigerian company which was previously exempt from Capital Gains Tax at 10%, is now no longer expressly exempted.
The following conditions would now have to be fulfilled before this exemption from tax can apply:
1.The proceeds from disposal of such shares are re-invested in purchasing any Nigerian company shares. Proceeds not re-invested will be taxed proportionately.
2.The cumulative proceeds (not just gains) from disposal, in any 12 consecutive months is less than N100million and the person (company or individual) making the disposal will render appropriate returns of tax authority every year.
3.The shares are transferred between an approved Borrower and Lender in a regulated Securities Lending Transaction.
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