Comparative Guides
Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.
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Results: 4 Answers
Corporate Tax
3.
Investment in capital assets
3.1
How is investment in capital assets treated – does tax treatment follow the accounts (eg, depreciation) or are there specific rules about the write-off for tax purposes of investment in capital assets?
 
Nigeria
Tax treatments do not fully follow the accounts. For instance, depreciation is not allowed, while capital allowances are granted for investments in capital assets in lieu of depreciation. Other adjustments to accounting profits include provisions (asset impairments) and unrealised gains or losses.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
3.2
Are there research and development credits or other tax incentives for investment?
 
Nigeria
Based on Section 26 of the Company Income Tax Act, companies and other organisations engaged in research and development activities for commercialisation are entitled to a 20% investment tax credit on qualifying expenditure for that purpose. In addition, Nigeria has various tax incentives intended to encourage investment, including the pioneer status incentive and road infrastructure development and refurbishment investment tax credits.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
3.3
Are inventories subject to special tax or valuation rules?
 
Nigeria
There is no special tax for inventories. The valuation rules follow accounting principles, but general provisions on obsolescence or stock losses are not allowed, unless they are specific or actual.

For more information about this answer please contact: Taiwo Oyedele from PwC Nigeria
3.4
Are derivatives subject to any specific tax rules?
 
Nigeria
There are no specific rules on the taxation of derivatives in Nigeria.

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