Oil Firms to Start Paying Tax on Dividends

• Oil Firms to Start Paying Tax on Dividends

Oil companies operating in the country will start paying tax on dividends paid from the profits they generated, Mrs. Zainab Ahmed, the Minister of Finance, Budget and National Planning, stated.

According to the statement released by the minister’s Special Adviser on Media and Communication, Yunusa Abdullahi, the Finance Bill submitted by President Muhammadu Buhari to the National Assembly on October 14 2019 would remove tax exemption approved for dividends received from oil companies and improve revenue generation.

Ahmed, in the statement, said, “This bill seeks to improve revenue by removing the tax exemption granted for dividends or income received from companies charged under Petroleum Profits Tax Act.

“The bill contains some changes to the Companies Income Tax Act, Value Added Tax Act, Petroleum Profits Tax Act, Personal Income Tax Act, Capital Gains Tax Act, Customs and Excise Tariff Act and Stamp Duties Act.

“The bill also seeks to address the taxation of industries, such as insurance, start-ups and the capital markets, evaluated by the Federal Government as critical to the growth and development of the Nigerian economy with a view to stimulating activities in those sectors and fostering overall economic growth.”

She said, “Future finance bills will therefore also provide us with additional opportunities to incrementally improve the fiscal policy and regulatory/legal environment in order to further strengthen our domestic capital market, and ultimately ensure sustained and inclusive growth and development.

“It is our hope that the bill will be enacted by the National Assembly as soon as possible to support the implementation of the 2020 Appropriation Act.”