In line with the ongoing Ease of Doing Business reforms, small businesses in Nigeria will be getting more support from the government under the provisions of the Finance Bill 2019 set to be implemented next year. Presented in October by President Muhammadu Buhari, the new legislation has undergone consideration and received approval for passage into law by the National Assembly.
According to the bill, small businesses with a turnover of less than N25 million are to be exempted from Companies Income Tax. This is expected to come as a relief to the lot of Small and Medium Enterprises (SMEs) in Nigeria, most of which already struggle to stay afloat in a hostile business environment.
Nigeria’s SMEs are starved of capital as poor access to finance constitute a major constraint for businesses. Similar challenges encountered by the sector include high cost of doing business and multiplicity of taxes, a problem the new bill looks to eliminate.
“The initiative is laudable and the proposed modifications to the fiscal rules around taxation are clearly aimed at creating an enabling business environment and alleviating the tax burden for small and medium enterprises,” accounting firm KPMG said in an analysis of the bill. “This is expected Click here to read entire article
Source:: Ventures Africa