Section 50 Nigeria Tax Act 2025

Section 50 of the Nigeria Tax Act 2025 is about Personal injury. It provides as follows:

(1) Sums not exceeding 50,000,000 obtained by way of compensation or damages for any wrong or injury suffered by an individual in his person or in his profession or vocation, including compensation for loss of office or employment, wrong or injury for libel, slander or enticement shall not be chargeable gains.

(2) Where the sum exceeds 50,000,000, only the excess amount shall constitute a chargeable gain.

(3) For the purposes of subsection (1) and (2), any person who pays compensation for loss of office or employment to an individual is required, at the point of payment of such compensation, to deduct and remit the tax due under this section to the relevant tax authority.

(4) The tax so deducted shall be remitted within the time specified under the Pay-As-You-Earn or Deduction of Tax at Source Regulations issued pursuant to the Nigeria Tax Administration Act, 2025.

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