The Federal Government has approved 27 new industries (see attached list) for inclusion in the list of pioneer industries and pioneer products, as part of its efforts to diversify the economy. By implication, companies operating in the industries would be eligible to apply for pioneer status, once the list is published in the Official Gazette.
Pioneer status is a fiscal incentive provided under the Industrial Development (Income Tax Relief) Act, Cap I7, Laws of the Federation of Nigeria, 2004 (IDA). Eligible companies operating in designated pioneer industries and or producing pioneer products, which apply for and are granted pioneer status, are entitled to income tax holiday for up to five (5) years – three (3) years in the first instance, renewable for an additional maximum period of two (2) years. In addition to income tax holiday, pioneer companies enjoy other benefits, such as the exemption of dividends paid out of pioneer profits from withholding tax.
For further enquiries on the above, please contact:
© 2017 KPMG Professional Services in Nigeria, a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.