Nigeria: Tax treatment of statutory levy to support research and development

Nigeria has been directed to begin collection and remittance of a statutory levy.

Nigeria has been directed to begin collection and remittance of a statutory levy.

The National Agency for Science and Engineering Infrastructure (established to foster the research and development of capital goods, production, and reverse engineering) and the Federal Inland Revenue Service have been directed to begin collection and remittance of a statutory levy that will allow the agency to achieve its mandate.

Commercial companies and firms that meet a ₦100 million turnover threshold are subject to the levy (imposed at a rate of 0.25%). The levy is a tax-deductible expense.

Read an August 2021 report [PDF 998 KB] prepared by the KPMG member firm in Nigeria

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.