The Nigerian Federal Government has proposed a legislative bill aimed at reforming the country’s tax system. The bill, dated October 4, 2024, includes a 50% tax relief for companies that increase salaries or offer transportation allowances to low-income workers.
Eligible expenses include wage increases and transportation subsidies for workers earning up to N100,000 monthly. However, salary increases for employees earning above N100,000 monthly are excluded.
Companies hiring new employees resulting in a net workforce increase between 2023 and 2024 also qualify, provided the new employees remain employed for at least three years.
Additionally, the government plans to introduce an Economic Development Incentive Certificate to incentivize companies investing in capital projects. Applications will be submitted through the Nigerian Investment Promotion Commission, accompanied by a non-refundable fee.
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