January 31, 2020/Access Bank Plc
The Finance Bill, now called the Finance Act 2020, was recently signed into law by the President. The legislation is broad, covering many aspects of taxation and is specifically designed to stimulate small and medium business growth.
The table below highlights the key changes made and how it may affect you in relation to banking services:
| Item | Old Bill | New Act |
Value Added Tax | 5% | 7.5% |
Stamp Duty Charge | N50 applied on electronic funds transfers or deposits of N1,000 and above | N50 applied on electronic funds transfers or deposits of N10,000 and above |
Tax Identification Number (TIN) | N/A | Required as a pre-condition to open or operate a bank account for business purposes |
These new requirements will take effect from February 1, 2020.
