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www.spnglegal.com_____________________________________________________________________________________ • Annual allowance 20%Export and Mining Enterprise• A wholly export oriented company established outside an export processing zone (EPZ) isexempted from companies income tax for its first 3 years, provided the export proceeds constituteat least 75% of its turnover and its repatriates at least 75% of the export earning to Nigeria.• Plant, machinery, equipment and accessories imported exclusively for mining operations inNigeria are exempted from customs and imports duties.• A new company engaged in the mining of solid minerals will enjoy a tax holiday of 3 years.• Free Trade Zones (FTZs) and EPZs are designated from time to time and enterprises operating insuch designated zones enjoy tax exemption and considerably relaxed exchange control measures.Telecommunications• Rebate and tax relief are provided for the local manufacture of telecommunications equipmentand provision of telecommunication services.Abolition of Excise DutyAll excise duties were abolished by the federal government effective 1 January 1998 but excise dutieswere re – introduced from 1 January 1999 on the following products:• Spirit and other spirit – based alcohol• Cigarette, cigars, cheroots and cigarillos• Other manufactured tobacco and tobacco –manufactured substitutesHoteliers and Tourism25% of income derived from tourism by hotels in convertible currencies is tax-exempt. This exemptiononly applies where such income is put in a reserve fund to be utilized within 5 years for expansion or theconstruction of new hotels, conference centres and new facilities deemed useful for the development oftourism.Research and Development• 120% tax deductible expenses for research and development carried out in Nigeria_____________________________________________________________________________________Doing Business in NigeriaAn Investor’s Guide- 2013Page 15 of 36