PIONEER STATUS HELP TO BRING COMPANY INTO TAX ……. AN INTERVIEW WITH YETUNDE SADIKU
PIONEER STATUS HELP TO BRING COMPANY INTO TAX NET, NIPC AND LEGISLATORS ARE PARTNERS IN PROGRESS……. AN INTERVIEW WITH YEWANDE SADIKU
KINDLY INTRODUCE YOURSELF
My name is Yewande Sadiku. I am the Executive Secretary and Chief Executives Officer of Nigeria Investment Promotion Council. (NIPC)
WHAT IS PIONEER STATUS?
Pioneer Status is an industrial development in the income tax incentive provided for industrial tax relief. Pioneer Status is a tax holiday which grants qualifying Industries and products relief from payments of corporate income tax for an initial period of three years, extendable for one or two additional years.
HOW DOES PIONEER STATUS INCENTIVES WORK IN NIGERIA
Pioneer Status Incentive PSI is designed to reduce the cost of doing business in Nigeria by providing corporate income tax relief to qualifying companies making Investment in Industries designated as Pioneer. Pioneer Status Incentive enhances the survival, profitability and sustainability of beneficiary companies. Giving pioneer status is giving them incentives, bringing the process that is informal to a formal economy.
WHAT IS THE ENABLING LEGISLATIONS FOR PIONEER STATUS
The Legislative backup is provided for in the income tax under industrial development act (income tax relief) Act No 22 of 1971 (IDA). The pioneer designation is confered by the inclusion of the Industry or product on a list approved by the Federal Executive Council
WHAT IS THE ROLE OF NIPC IN PIONEER STATUS
there are key roles of the arms of Government involved in the foundational approval and administration of the Pioneer Status Incentives. On the authority of the president, the Federal Executive Council is responsible for amending the list of pioneer Industries and pioneer products from time to time. Federal Ministry of Industry Trade and Investment is responsible for specifying the mode of application for pioneer status incentive. NIPC on the delegated authority of the president is responsible for approving and extending pioneer status incentive and issuing pioneer certificates. FIRS is responsible for implementing pioneer status incentive and issuing certificate of qualifying capital expenditure.
WHAT IS THE DIFFERENT BETWEEN PIONEER STATUS AND WAIVERS BEEN GRANTED BY THE FEDERAL MINISTRY OF WAIVER
waiver says you don't comply with a rule. it is an exemption given in complying with a rule but pioneer status is provided in law. Pioneer Status is not a waiver, it is a relief the law provides for Industries to grow to maturity and back up in law. so waiver is not applicable in qualifying pioneer status.
WHAT IS THE DIFFERENCE BETWEEN SERVICES CHARGE AND TAXATION
service charge is a fee you pay on a service, decided by individuals involved while pioneer status is a legal obligation, a tax is defined by law.
IS PIONEER STATUS APPLICABLE TO EVERY COMPANY OPERATING IN NIGERIA OR SOME SELECTED COMPANIES.
pioneer status is not for all companies registered or not, but some listed under strict criteria. the criteria enlisted on our website, the company must be on the pioneer list, with a non current tangible asset of 100million naira, make applications for the pioneer status incentives and meet the requirements on our website. If you want Pioneer Status, prepare your account, file them, register with NIPC, CAC, FIRS before you can qualify for the relief for 3-5 years.
WHAT IS THE RELATIONSHIP BETWEEN NATIONAL ASSEMBLY AND NIPC
there is no growing economy that doesn't have a good legislation. National Assembly and NIPC are partners in progress. our action is back up by their legislations and vice versa. so we work hand in hand with the Lawmakers.
IS THERE ANY DUPLICATION OF ROLES BETWEEN NIPC AND FIRS
no, no, no. there is no duplication of roles. we devolutions of power. The application is filed by NIPC which take eighteen weeks, after which the applicant apply to Industrial inspectorate department, the Industrial inspectorate department send the application back to us for final approval and issuing of certificate of pioneer status and then to FIRS for the prepared account. But we are jointly on the same page. As we share information with FIRS which helps them on their work. What NIPC have done is to bring companies visible to FIRS
CLARIFY THE DIFFERENCE BETWEEN PIONEER STATUS AND A COMPANY TRYING TO EVADE TAX
Pioneer Status is a legal provision for you to enjoy tax holiday documented . It shows you made a profit but you are legally allowed not to pay tax base on tax relief. A company that is trying to evade tax is doing that illegally. It's a crime punishable under the law.
IS IT POSSIBLE YOU SHIELD COMPANIES EVADING TAX
NIPC is a Federal Government Agency. We benefit nothing by shielding companies from paying tax. Taxes are not paid to us directly. We only help Federal Government in payment of tax. What NIPC have done in that instance is to bring companies into the tax net, simple. There is a provision for the review of pioneer status every two years. We will not shield companies from paying tax but will rather net them in for the tax.
Buhari’s 2019 budget presentation threatened to be boycotted by Reps
Buhari’s 2019 budget presentation threatened to be boycotted by Reps nassnewsng.com Brown Sylvia. A MembersRead More
Reps want Parliamentary System of Government for Nigeria
Reps want Parliamentary System of Government for Nigeria nassnewsng.com Brown Sylvia. A 71 bipartisan membersRead More