The Nigeria Investment Promotion Commission (NIPC) issued pioneer status incentive application guidelines (NIPC Application Guidelines) for potential investors in the country. This application guidelines effects from August 1, 2017. It gives information on relevant concerns and application techniques for entities making an application for a Pioneer Status Incentive (PSI), and also to renew an expired PSI.
Pioneer Status Incentive (PSI) is a form of tax incentive exempting qualified companies in certain industries and service sectors from paying company income tax in their formative years so as to boost investment and enable them make appreciable profit. As an incentive, it exempts qualified companies from corporate income taxes for an initial 3-year period. This period can be renewed for one or 2 years.
The Federal Government had earlier in September 2015 imposed an administrative suspension on the processing of PSI application, in order to effect a comprehensive review and reform of the incentive regime, increase transparency and efficiency in the process, and improve the ability of the government to measure the impact of the incentive. According to the new application guidelines, the process of application is expected to take about 6 months.
