Regulatory Alerts2025-07-01
Circular on the Expiration of the Companies Income Tax (Exemption of Bonds and Short-Term Government Securities) Order, 2011
The Securities and Exchange Commission (SEC) announced that the ten-year tax exemption period granted under the Companies Income Tax (Exemption of Bonds and Short-Term Government Securities) Order, 2011, expired in December 2021. Consequently, interest income from treasury bills, promissory notes, and bonds issued by various government and corporate entities may now be subject to applicable tax obligations, requiring consideration of Withholding Tax (WHT) deduction. Parties involved in issuing or processing payments for these instruments should take steps to align with current tax compliance requirements, though tax exemption for Federal Government of Nigeria bonds remains recognized.
Share