By our Reporter
The Federal Inland Revenue Service (FIRS) has set date for the commencement of Finance Act 2023.2
FIRS made this disclosure in a public notice it issued in Abuja on Friday, August 25.
The public service was signed by the agency’s executive chairman, Muhammad Nami.
The amended Finance Act 2023, which tweaked certain provisions in the tax laws, was enacted on 28h May, 2023 and back dated to take effect from 1 May 2023.
The public notice read: “However, pursuant to the Finance Act (Effective Date Variation Order) 2023, the effective date was changed to 1 September 2023.
Consequently, taxpayers, tax practitioners and the general public have been “invited to take notice that the amended provisions shall take effect as follows:
It added: “Value Added Tax (VAT) withheld or collected, Section 14(3) of the VAT Act was amended to the effect that persons appointed to withhold or collect VAT shall remit the VAT withheld or collected on or before the 14th day of the month following the month in which the VAT was withheld or collected”.
“Consequently, all VAT withheld or collected in August 2023 shall be remitted to FIRS on or before the 14th of September 2023.
“Similarly, VAT withheld or collected in subsequent months shall be remitted to FIRS not later than 14h day of the month following that in which the VAT was withheld or collected”.
VAT on Items Excluded from Building. The definition of “building” was amended in Section 46 of the VAT Act to exclude any fixture or structure that can be easily removed from the land.
Examples of items excluded are radio and television masts, transmission lines, cell towers, mobile homes, caravans and trailers. As such, all the items removed from the definition of land have become chargeable to VAT.
Companies letting, trading in or providing services with such items must charge VAT at the prevailing rate with effect from 1st of September, 2023.
Rate of Tertiary Education Tax (TET). By the amendment to Section 1(2) of TET Act, the rate of TET was changed to three percent of assessable profits.
According to the FIRS, “the new TET rate of three percent shall take effect for TET becoming due in respect of accounting period ending on or after 1 September, 2023.
Investment Allowances and Convertible Currencies. Sections 32, 34 and 37 of the Companies Income Tax Act (CITA) granting allowances in respect of capital expenditure incurred in certain circumstances, and tax exemption on income earned in convertible currencies from tourists by hotels have been repealed.
The FIRS said: “Consequently, the said allowances and tax exemption are no longer available for tax returns becoming due in respect of accounting period ending on or after 1 September, 2023.”