Section 28 Nigeria Tax Act 2025

Section 28 of the Nigeria Tax Act 2025 is about Total income of an individual. It provides as follows:

(1) The total income of an individual for any year of assessment is the taxable income less total deduction.

(2) For the purposes of subsection (1) –
(a) taxable income is the aggregate amount of –

(i) assessable profits from trade, business, profession or vocation ascertained in accordance with Part V of Chapter Two of this Act,
(ii) employment income,

(iii) income from investing activities,
(iv) profits or income from any other source, and
(v) chargeable gains from the disposal of chargeable assets.

(b) total deduction is the sum of –
(i) any loss ascertained in accordance with subsection (2),
(ii) capital allowance in accordance with the provisions of Part I of the First Schedule to this Act,
(iii) income of the individual that is exempt from tax under this Act, and
(iv) income of the individual on which the tax deducted at source under section 51 of Nigeria Tax Administration Act, 2025 is the final tax.

(3) The loss to be deducted in arriving at the total income of an individual is –
(a) the amount of a loss incurred by the individual during the year or preceding year of assessment in a trade, business, profession or vocation;
and
(b) the amount of loss incurred on the disposal of a chargeable asset:

Provided that –
(i) in no circumstances shall the aggregate loss deductions from income
exceed the amount of that loss,
(ii) the loss shall be deducted as far as possible from assessable profit of a trade, business, profession or vocation of the first year of assessment after that in which the loss was incurred, and in subsequent years until the loss is fully recouped,

(iii) the loss incurred during any year of assessment shall be computed, in accordance with the basis period contained in Part V of Chapter Two of this Act, and
(iv) any loss incurred in any period from sales, disposal or any other transaction in digital or virtual assets shall only be deductible against the profit or gain from digital or virtual assets.

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