Nigeria: Insurance companies subject to generally applicable excess dividend tax rule (Tax Appeal Tribunal decision)
Insurance companies are liable to tax under section 16 of the CITA and other non-conflicting provisions of the CITA
Insurance companies are liable to tax under section 16 of the CITA and other non-conflicti
The Tax Appeal Tribunal Lagos Zone held in favor of the tax authority that insurance companies are not only liable to tax under section 16 of the Companies Income Tax Act (CITA), which provides specific rules for the taxation of insurance companies, but also under other non-conflicting provisions of CITA—in particular section 19 of the CITA relating to the taxation of excess dividends paid by any Nigerian company.
The tribunal rejected the taxpayer’s arguments that section 16 created a special tax regime for insurance companies distinct from the general rules applicable to other companies.
The case is: FBN Insurance Limited v. Federal Inland Revenue Service
Read a May 2024 report prepared by the KPMG member firm in Nigeria
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