Date of Assent: 29th June, 2021
1. Take note of sections in Red here and their references thereafter.
- (a) sections 9, 10, 13, 14, 19, 21(a), 21(b), 21(e), 40, 50, 58, 60, 73, 75, and 76, on the 1st January, 2022; and
- (b) all other sections, on the 1st July, 2021.
INCOME TAX ACT
2. Section 2 of the ITA is amended—
- (a) by inserting new definitions for “control” and “infrastructure bond”
- (b) by redefining “permanent establishment”
3. Section 3 of the ITA is amended:
4. Section 4A of the ITA is amended: In subsection (4)
- by deleting the definition of the word “control”.
5. The ITA is amended in section 11 by:
- Inserting a new subsection (3A)— for registered trusts.
6. Section 12D of the ITA is amended—
- (a) by deleting paragraphs (d) and (e) in subsection (1) ;
- (b) by inserting new subsection 1A after subsection (1).
7. Section 12E of the ITA is amended—
- (a) by deleting subsection (1) and substituting new subsection—
- (b) by deleting subsection (2) and substituting new subsection.
- (c) by inserting new subsection(3) immediately after subsection (2).
8. Section 15 of the ITA is amended:
- (a) in subsection (2), by deleting definition of Control.
- (b) in subsection (4) : Tax Losses – Removal of the 10 year limit
9. Section 16 of the ITA is amended in subsection (2) by—
- (a) deleting paragraph (j) and substituting new paragraph—Gross interest paid.
- (b) inserting paragraph ja immediately after paragraph (j)—deemed interest.
13. Section 31 of the ITA is amended by: Editing subsection (1) — NHIF relief.
14. Section 39B of the IT is amended by: Editing subsection (1) — rebate for apprenticeships
15. The ITA is amended by deleting section 41 and substituted—relief from double taxation.
16. The ITA is amended in section 41A by: deleting some words.
17. Section 133 of the ITA is amended -
- (a) in subsection (6) by: extending application of 24E to “31st December, 2022”;
- (b) by inserting a new subsection – investment allowance on WDV as at 01/07/2021 be claimed on a straight-line basis.
18. The First Schedule to the ITA is amended—
- (a) in paragraph 36 by inserting ta new paragraph (g): - Sales* to registered family trust.
- (b) by inserting 2 new paragraphs 57*&58*: - Incomes and capital gains of family trust.
19. The Second Schedule to the ITA is amended
(a) in paragraph 1—
(a) in paragraph 1—
- In subparagraphs (a),(b),(c) and (d): “on reducing balance” replaced by “in equal instalments”.
- In subparagraph (b) by deleting the words “under a mining right” in subparagraph (xi);
- In the proviso—deleting the words “through the national grid” in subparagraph (f);
- By adding the following new subparagraph (g):-civil works & (h):-Farm works
(b) by inserting new subsection (1A) immediately after subsection (1)—100% investment deduction
20. The Third Schedule to the ITA is amended in paragraph 5 by: inserting new sub-paragraph (jb) - disbursement of deemed income
21. The Ninth Schedule to the ITA is amended—
- (a) in paragraph 4(3), deleted and replaced by a new one — rate of depreciation
- (b) in paragraph 9(3), by deleted and replaced by a new one —rate of depreciation
- (c) in paragraph 15(2)— in item (a) & (b) , by changing rates “5.625%” to “10%”.
- (d) in paragraph 16(1)(d) by changing rates “12.5% ” to “10%”.
- (e)by deleting paragraph 18 and substituting with a new paragraph—Deductibility of interest.
VALUE ADDED TAX
22. Section 2(1)(c) VATA: paragraph (c) is deleted and replaced: - supply of imported services.
23. Section 5 VATA, amended—
- (a) in subsection (7), by expanding it:
- (b) by deleting subsection (9) and replacing it with new one:- digital marketplace
24. Section 10 of the VATA is amended—by editing subsections (1), (2), & (3).
25. Section 17 of the VATA is amended—by editing subsections (1), (4).
26. Section 19 of the VATA is amended - by editing subsection (2).
27. The First Schedule to the VATA is amended—By
Amending Part I (Exempt Goods) by:
- deleting paragraphs 33&34, 75, 76, 85, 86, 87,
- deleting the some tariff numbers appearing after paragraph 39.
- ordinary bread deleted from exempt list.
- More items in exempt list.
- by editing/Correcting paragraphs 68,70,71,72,73,77,78,79,80,81,82,83,84, .
- Adding more items to the exempt list from Paragraph 112 to 139
Amending Part II(Exempt services) by:
- Adding more items to the exempt list from Paragraph 32 and 33.
- Deleting par18A: (Transportation of sugarcane from farms to milling factories from exempt to Zero-rated)
28:The Second Schedule Part A to the VATA is amended -By
- Deleting exportation of taxable services in Par1 from the list.
- Adding more items to the Zero-rated list from Paragraph 20 and 22.
Excise Duty Act
29. Section 2 of the EDA: new definitions “compound” and “possession” inserted.
30. Section 7 of the EDA: new subsection 3A inserted after subsection (3).
31. Section 14 of the EDA: Renumbering and inserting new subsection (2).
32. First-schedule of the EDA: Rates changes. (iii)missing
33. Second Schedule to the EDA: 2sub sections added.
TAX PROCEDURES ACT
34. Section 3 of TPA: "the Miscellaneous Fees and Levies Act, 2016” inserted in (b) & (c); in definition of “tax law” :
35. Sections 6A and 6B inserted after section 6 TPA― :For International tax agreements and Common reporting standard obligations respectively.
36. Section 23 of TPA: New subsections 2A & 2B inserted after subsection (2).
37. Section 37 TPA: New paragraph (d) inserted in subsection (1) and new subsection (4) inserted.
38. The TPA is amended by : Repealing section 37A.
39. Section 42A TPA is amended by: Deleting subsection (4A)-Exemption from WHT
40. Section 47 TPA is amended by: Inserting subsections 4A,4B, 4C after subsection (4).
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