Section 55 Nigeria Tax Act 2025

Section 55 of the Nigeria Tax Act 2025 is about Assets held in trust for charities. It provides as follows:

(1) Any property held in trust for –
(a) a religious or charitable institution of a public character,
(b) any statutory or registered friendly society,
(c) any co-operative society registered under the co-operative societies law of any State, or

(d) any trade union registered under the Trade Unions Act, shall not be subject to the provisions of Chapter Two of this Act, provided that the gain is not derived from the disposal of an asset acquired in connection with any trade or business carried on by the institution, society or trade union, and the gain is applied solely for the purpose of the institution, society or trade union.

(2) Where such property ceases to be subject of such trust –
(a) the trustees shall be treated as if they had disposed of, and immediately re-acquired the property for a consideration equal to its market value, any gain on the disposal shall be treated as not accruing to the institution or society; and

(b) any gain accruing directly or indirectly on that disposal shall be treated as having accrued to the trustees and shall be chargeable gains for the purposes of Chapter Two of this Act.

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