Eight companies granted tax relief under pioneer status incentive, says NIPC

The federal government has granted additional eight companies tax relief following approval of their applications.

The tax relief was granted after the companies’ filed application for pioneer status under the industrial development income tax relief Act (IDITRA).

The Nigerian Investment Promotion Commission (NIPC) disclosed the full list of the companies in its report on pioneer status incentive applications for Q2 2021.

The pioneer status incentive (PSI) is a tax holiday that grants qualifying industries and products relief from payment of corporate income tax for an initial period of three years, extendable for one or two additional years.

According to the report, the eight new beneficiaries include Premium Aquaculture Limited (fish farming); Tosett Agro Industries Limited (processing of edible oil); Aurebles Ventures Limited (manufacture of gas); Wintess Garden (Hotels and Suites) Limited (hotel development); and De Santiago Milan Hotel & Suite Limited (hotel development).

Others are Metsa Wood Services Limited (furniture); Tiloc Nigeria Limited (hotel development); and Tranos Constructing Limited (electrical fuses, electrical sockets, and electrical casement).

With the eight new PSI granted, a total of 31 companies including Dangote Sinotrucks West Africa (trucks, tippers and tractors) and Honeywell Flour Mills Nigeria Plc (pasta and macaroni) have benefited from the initiative as at June 30, 2021.

According to the report, 28 new applications were received between April and June while five extension applications were received.

It disclosed that seven companies had their applications approved-in principle.

This implies the seven firms are subject to the payment of application fees and will only take effect (application) after the payment of such fees.

There was no approval for extension applications or declining of application.

Cases of cancellation of PSI certificates and abandoning of PSI application were also not recorded during the period.

The NIPC report added that there are 160 pending applications with various reasons including awaiting of verification visit, provision of additional information, awaiting of management consideration, among others.