Staying Compliant: Key Updates on Nigerian Tax Laws in 2024
Keeping on top of Nigeria's evolving tax landscape can be a challenge. But fret not, for this blog post will unravel some of the most significant tax law updates implemented so far in 2024.
1. Expatriate Employment Levy
February 2024 saw the introduction of the Expatriate Employment Levy by the Nigerian Federal Government. Aimed at regulating the employment of expatriate workers, this levy is outlined in the newly introduced Expatriate Employment Handbook.
2. VAT for Non-Resident Suppliers
The focus on capturing tax revenue from the digital economy continues. Following the 2020 Finance Act's amendments, non-resident suppliers offering goods and services to Nigerian customers are now required to register for and account for VAT. This came into effect on January 1st, 2024 for the supply of goods.
3. Tertiary Education Tax (TET) Increase
Budgeting for education received a boost with the rise in TET from 2.5% to 3%. This amendment under the Finance Act 2023 applies to accounting periods ending on or after July 1st, 2023.
4. Revised VAT Filing Procedures
The Federal Inland Revenue Service (FIRS) has streamlined the VAT filing process on its TaxPro Max platform. Implemented in April 2023, these changes aim to improve the efficiency of input VAT claims, sales adjustments, and output VAT filing.
5. Nigeria-ECOWAS Tax Treaty
Good news for businesses operating across borders! A new tax treaty signed between Nigeria and ECOWAS member countries in May 2023 helps eliminate double taxation on income, capital, and inheritance.
Staying Informed
Remember, this is not an exhaustive list. The Nigerian tax environment is constantly evolving. To ensure you're fully compliant, it's wise to consult with a tax professional and stay updated on the official pronouncements of the FIRS https://www.firs.gov.ng/.
By keeping yourself informed, you can navigate the ever-changing tax landscape with confidence.
