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BBunmi Mercy 3 years ago
A pioneer status is an incentive by the government which grants tax holiday to qualifying industries and product. This means that the qualified industry or product is relieved from paying corporate income tax. Pioneer status is usually for an initial period of three years, and it is extendable for one or two years.
Pioneer Status Incentive is founded under the Industrial Development (Income Tax Relief) Act, No 22 of 1971 (“IDA”). In Nigeria it is administered by The Nigerian Investment Promotion Commission (NIPC).
According to the official gazette, some of the qualifying industries are:
· Agriculture
· Mining and Quarrying
· Manufacturing
· Electricity and gas supply
· Waste management
· Construction
· Trade
· Information and communication
· Financials
· Professional services (photography services)
Objectives of pioneer status includes:
· To stimulate foreign investment
· To encourage economic activity
· To foster growth and development
PSI is applicable to both new and existing companies