Section 26 Nigeria Tax Act 2025

Section 26 of the Nigeria Tax Act 2025 is about Basis for computing assessable profits for trade or business. It provides as follows:

(1) With respect to income from an employment or pension, the assessable income of an individual shall be the amount of the income of the year of assessment.

(2) For the purpose of subsection (1), income from an employment shall be deemed to arise from day to day except to the extent that it is derived from any bonus, commission or allowance payable on one occasion only or at intervals exceeding one month, and to that extent it shall be deemed to be income –
(a) of the day on which it is paid; or
(b) where it is paid after the cessation of the employment, of the last day of the employment including any terminal benefit arising therefrom.

(3) With respect to disposal of a chargeable asset, the assessable income of an individual shall be the amount of the chargeable gains accruing from assets disposed during the year immediately preceding the year of assessment, except for chargeable gains accruing from the disposal of chargeable assets used in the individual’s trade, business, profession or vocation, which shall be those disposed during the year immediately preceding the year of assessment.

(4) Notwithstanding the foregoing provisions of this section, the assessable income of a trustee, or of an executor of the estate of a deceased individual, or of a beneficiary of a trust or estate for any year of assessment shall be the income of that person for the year preceding that year of assessment as determined under the provisions of the Fifth Schedule to this Act.

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