Tax Relief

Eight firms gave tax breaks as a part of the pioneer standing incentive, says NIPC

After approving their applications, the federal government granted eight companies additional tax breaks.

The tax relief was granted after companies applied for pioneer status under the Industrial Development Income Tax Reduction Act (IDITRA).

That Nigerian Commission for Investment Promotion (NIPC) published the full list of companies in its report on funding applications for pioneer status for the second quarter of 2021.

The Pioneer Status Incentive (PSI) is a tax exemption that grants qualified industries and products an exemption from paying corporate income VAT initially for three years, renewable for a further year or two.

According to the report, the eight new beneficiaries include Premium Aquaculture Limited (fish farming); Tosett Agro Industries Limited (edible oil processing); Aurebles Ventures Limited (manufacturing gas); Wintess Garden (Hotels and Suites) Limited (Hotel Development); and De Santiago Milan Hotel & Suite Limited (hotel development).

Others are Metsa Wood Services Limited (furniture); Tiloc Nigeria Limited (hotel development); and Tranos Constructing Limited (electrical fuses, sockets and electrical wings).

With the eight new PSI, a total of 31 companies, including Dangote Sinotrucks West Africa (trucks, tippers and tractors) and Honeywell Flour Mills Nigeria Plc (pasta and macaroni), benefited from the initiative as of June 30, 2021.

According to the report, 28 new requests and five renewal requests were received between April and June.

It announced that the applications of seven companies had been approved in principle.

This means that the seven law firms are subject to the payment of registration fees and only take effect (application) after these fees have been paid.

There was no approval for renewal requests or request rejection.

Cases of deletion of PSI certificates and termination of PSI registration were also not recorded in the reporting period.

The NIPC report added that there are 160 pending applications for a variety of reasons, including waiting for a verification visit, providing additional information, and waiting for management to review.

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