A Presentation at the 2019 1 st Capital Market Committee CMC Meeting on 21 st March 2019 by Federal Inland Revenue Service FIRS EXECUTIVE ORDER No 007 ROAD INFRASTRUCTURE DEVELOPMENT AND REFURBISHMENT INVESTMENT TAX CREDIT SCHEME ID: 1029890
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1. RECENT TAX REFORMS IMPACTING ON THE NIGERIAN CAPITAL MARKETA Presentation at the 2019 1st Capital Market Committee (CMC) Meeting on 21st March 2019.byFederal Inland Revenue Service (FIRS)
2. EXECUTIVE ORDER No. 007 ROAD INFRASTRUCTURE DEVELOPMENT AND REFURBISHMENT INVESTMENT TAX CREDIT SCHEMEThe President, Federal Republic of Nigeria on 25 January, 2019, signed the Executive Order No. 007 on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme to provided private sector funding to Road infrastructures in Nigeria. The Executive Order 007 has some implication capable of enhancing trading activities in the Nigerian capital market.
3. IMPACT OF EXECUTIVE ORDER 007 ON THE NIGERIAN CAPITAL MARKETSale/Transfer of tax credit: Participants may sell or transfer the whole or part of its unutilized Tax Credit to any interested party, subject to complying with protocols prescribed in the Scheme. This means that a Participant, who for any reason does not wish to utilize its Tax Credit, may easily recover its investment without recourse to the FGN.Transfer/Trading of certificates: The Road Infrastructure Tax Credit (RITC) Certificate is transferable (traded in part or whole) as an instrument on the Stock Exchange;
4. IMPACT OF EXECUTIVE ORDER 007 ON THE NIGERIAN CAPITAL MARKETGroup Taxation and Trading tax attributes on the FMDQ OTC Securities ExchangeParagraph 4(4) of the RIDRITCS Order introduces the novel concept of Group Taxation into the Nigerian Corporate taxation by permitting any participant to transfer its Investment Tax Credit benefits to its parent, Subsidiary, Sister or any other company operating within its recognised group companies. Similarly, Paragraph 4(5) allows participants or beneficiary companies to trade their Investment Tax Credit as tradable instruments on the FMDQ (OTC) Securities Exchange.
5. LEGISLATIONS AND REGULATIONSThe Real Estate Investment Scheme (Taxation) Regulations, and the Islamic Non-Interest Finance (Taxation) Regulations.The Real Estate Investment Scheme (Taxation) Regulations and the Islamic Non-Interest Finance (Taxation) Regulations are both at the Federal Ministry of Justice awaiting publication in the Government Gazette.