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Results: 4 Answers
Corporate Tax
2.
Special regimes
2.1
What special regimes exist (eg, for fund entities, enterprise zones, free trade zones, investment in particular sectors such as oil and gas or other natural resources, shipping, insurance, securitisation, real estate or intellectual property)?
 
Nigeria
Companies engaged in upstream petroleum operations are liable to tax under the Petroleum Profit Tax Act (see question 1.2). Approved enterprises operating in free trade zones are regulated by the Nigeria Processing Zones Act and are exempt from all taxes.

Also, any company considered as operating in a pioneer industry and providing pioneer goods and services may be granted an income tax-free period of up to five years from commencement of business.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
2.2
Is relief available for corporate reorganisations or intra-group transfers of companies and other assets? Please include details of any participation regime.
 
Nigeria
Under Section 29(9) of the Company Income Tax Act, the tax authorities may grant some relief where there is an intra-group transfer of assets. There is no express provision for relief with respect to value added tax on assets transferred.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
2.3
Can a taxpayer elect for alternative taxation regimes (eg, different ways to calculate the taxable base, such as revenue-based versus profits based or cash basis versus accounts basis)?
 
Nigeria
A taxpayer cannot elect for alternative taxation regimes in terms of the taxable base. Profits-based calculation is used to determine the tax payable for all entities. However, the tax authorities are empowered to use revenue-based calculation in the event of best of judgement assessments.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
2.4
What are the rules for taxing corporates with different functional or reporting currency from that of the jurisdiction in which they are resident?
 
Nigeria
Income tax is assessed in the currency in which the transaction giving rise to the assessment was carried out. In practice, all companies (other than petroleum companies) convert their foreign currency transactions into naira at the prevailing Central Bank of Nigeria rate and pay their taxes in the local currency.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
2.5
How are intangibles taxed?
 
Nigeria
Intangible assets which meet the requirements of qualifying capital expenditure may be capitalised or expensed for tax purposes. For instance, computer software that forms an integral part of a computer is treated as qualifying plant expenditure, while standalone software is treated as an intangible asset and amortised over the useful life of the asset. Disposal of intangible assets is subject to capital gains tax at 10% on the chargeable gains.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
2.6
Are corporate-level deductions available for contributions to pensions?
 
Nigeria
Yes, contributions to pensions (mandatory or voluntary) by employers are deductible for company income tax purposes.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
2.7
Are taxpayers from different sectors (eg, banking) subject to different or additional taxes or surtaxes?
 
Nigeria
All corporate taxpayers are subject to the same company income tax rate of 30%, with the exception of companies in the petroleum upstream sector. Additional taxes may apply, such as the information technology tax, which is applicable to certain companies, including telecommunications, banking, insurance and internet service providers.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
2.8
Are there other surtaxes (eg, solidarity surtax, education tax, corporate net wealth tax, remittance tax)?
 
Nigeria
Other surtaxes – such as education tax, information technology tax and the Nigerian content development levy – may apply to companies operating in Nigeria.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
2.9
Are there any deemed deductions against corporate tax for equity?
 
Nigeria
There are no deemed deductions against corporate tax for equity.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria