Section 35 Nigeria Tax Act 2025

Section 35 of the Nigeria Tax Act 2025 is about Disposal of assets. It provides as follows:

(1) For the purpose of this Act, there is a disposal of assets by a person where any sum is derived from a sale, lease, transfer, an assignment, a compulsory acquisition or any other disposition of assets, subject to any exemptions as may be provided in Chapter Eight of this Act.

(2) Subsection (1) shall apply, notwithstanding that no asset is acquired by the person paying the sum, and in particular where the sum is –
(a) derived by way of compensation for any loss of office or employment;

(b) received under a policy of insurance and the risk of any kind of injury or damage, or the loss or depreciation of assets;
(c) received in return for forfeiture or surrender of a right, or for refraining from exercising a right; and
(d) received as consideration for use or exploitation of any asset.

(3) In this Part –
(a) references to a disposal of assets include, references to a part disposal of assets; and
(b) there is a part disposal of assets where –
(i) an interest or right in or over the assets is created for another person by the disposal, and
(ii) a part of the interest in the property which subsists before the disposal remains with the person making the disposal.

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