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COVID-19: Companies to get 50% PAYE refund with new bill passed by reps

COVID-19: Companies to get 50% PAYE refund with new bill passed by reps
March 24
16:18 2020
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The house of representatives has passed a bill requiring the federal government to refund to companies 50% of the income tax paid on employee salaries.

The ’emergency economic stimulus bill’ introduced and passed during Tuesday’s plenary session, was sponsored by all the principal officers.

However, it would need to be passed by the senate and sent to the president for assent to become law.

According to a copy of the bill obtained by TheCable, it seeks to protect employees and caution the economic implication of the pandemic for companies registered under the Companies and Allied Matters Act (CAMA) 2004.

The bill states that eligible companies would be those do not retrench their staff from March 1 till December 31, 2020.

It added that such employers shall during the period be “entitled to 50% income tax rebate on the total of the actual amount due or paid as pay as you earn (PAYE) tax under the personal income tax act cap C8 LFN 2004 (as amended)”.

It also seeks to suspend import duties on medical equipment and drugs required for the treatment and management of the Covid–19, for a period of three months, starting from the end of March.

The bill also provides for deferment of all mortgage payments for a period of 180 days effective from March 1, 2020.

The deferment is applicable to residential mortgages obtained by individual contributors to the national housing fund

Femi Gbajabiamila, the speaker, said the bill is temporary and is meant to expire in December.

“We can review the bill before the expiration date if, in the next few months, there is no need for it and we were able to beat the virus,” he added.

As at Tuesday afternoon, Nigeria had 42 cases of the coronavirus across five states and the federal capital territory.

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