Nine companies get three years tax holiday

The Nigerian Investment Promotion Commission (NIPC) granted approval for Pioneer Status Incentive (PSI) to nine companies with an investment of ₦277.4 billion in the fourth quarter of 2018.

The commission made the disclosure in its “Report On Pioneer Status Incentive Application Q4 2018”, on its website on Wednesday.

It said that the nine companies that were granted approval in principle, created 1,733 direct jobs in the period under review.

The News Agency of Nigeria (NAN) reports that a pioneer status incentive grants companies making investments in qualifying industries and products a tax holiday of three years from the payment of company income tax.

The three-year tax holiday has the possibility of an extension for one or two additional years to enable the industry concerned to make a reasonable level of profit within its formative years.

According to the report, nineteen new applications and three extension applications were received during the period.

“Nine applications were granted approvals in principle and had a total investment of ₦277.417 billion, while direct jobs created was 1,733.

“Three companies were granted extension for two years and their total investment is put at ₦87.31 billion, while direct jobs created was 5,517,” it said.

It said that eight companies were granted PSI with confirmed production dates; one application was declined and 23 companies were still enjoying PSI in the reporting period.

NAN reports that companies granted approval in principle are Montego Upstream Services Ltd., Globus Resources Ltd., Lafarge Cement Plc, Karshi Agro Farms Ltd., and Edimara Properties Ltd.

Others are Hayat Kimya Nigeria Ltd; NFE Industries Ltd, Fidson Healthcare Plc and Rensource Distribution Energy Ltd. (NAN)