Sectorial Investment Incentives: Real Estate and Road Infrastructure

Practice questions covering investment incentives for Real Estate Investment Companies and the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme based on the lecture transcript.

Under what condition is the dividend and rental income received by Real Estate Investment Companies (REICs) on behalf of shareholders exempt from company income tax?

A minimum of $75\%$ of the dividend or rental income must be distributed within $12$ months of the end of the financial year in which the income was earned.

Is income earned by Real Estate Investment Companies other than that collected on behalf of investors liable to tax?

Yes, any income earned by the real estate investment companies other than those collected on behalf of the investors is liable to company income tax.

What specific exemption do Real Estate Investment Companies enjoy regarding distributed income and excess dividend tax?

They enjoy an exemption of rental and dividend income distributed to shareholders from excess dividend tax.

Which specific payments made by Real Estate Investment Companies are deductible for company income tax purposes?

Dividends or mandatory payments made to shareholders that are approved by the Securities Exchange Commission.

What requirement must a Real Estate Investment Company meet to be exempt from withholding tax on dividends received?

It must meet the requirement of distributing a minimum of $75\%$ of dividend or rental income.

When was the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme set up in Nigeria?

January $2019$.

What is the core purpose of the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme?

To enable the Federal Government of Nigeria to leverage private sector capital and efficiency for the construction, refurbishment, and maintenance of critical road infrastructure in key economic areas.

What incentive are participants entitled to under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme?

They are entitled to the project costs incurred in the construction or refurbishment of an eligible road as tax credits against their company income tax liability until full cost recovery is achieved.