By Hajara Umar Nataala
A source at the presidency has recently disclosed that there is no provision in the 2022 Finance Bill before the National Assembly that requires Nigerians to have a tax identification number (TIN) to operate bank accounts.
Reports citing the bill have claimed that there is a provision in the proposed legislation that mandates banks to “Request for TIN before opening bank accounts for individuals while existing account holders must provide their TIN to continue operating their accounts”.
The Presidency source involved in the drafting of the bill said the news reports were “totally inaccurate, as the bill has no such provisions for individuals”.
According to the document seen by a Guardian representative, the main changes proposed under the bill, which is set to be defended this week, at both the Senate, and the House of Representatives includes the capital gains tax. This rate which is set to be at five per cent is to be applicable only during the disposal of shares in a Nigerian company worth N500 million or more in any 12 consecutive months except where the procedure is reinvested in the shares of any Nigerian company within the same year of assessment.
This new bill requires lottery and gaming businesses to be specifically taxable under the Company Income Tax Act (CITA).
This will also apply to betting, the game of chance, promotional competition, gambling, wagering, video poker, roulette, craps, bingo and slot or gaming machines.
The document says companies engaged in petroleum operations including midstream and downstream operations will not be eligible for exemption on profits in respect of goods exported from Nigeria. Downstream companies were previously eligible under the old upstream and downstream classification.
It empowers the Federal Inland Revenue Service (FIRS) to assess company income tax (CIT) on the turnover of a foreign digital company involved in transmitting, emitting, or receiving signals, sounds, messages, images, or data of any kind including e-commerce, app stores, and online adverts.
Source: The Guardian