Section 46 Nigeria Tax Act 2025

Section 46 of the Nigeria Tax Act 2025 is about Location of assets. It provides as follows:

For the purposes of Chapter Two of this Act –
(a) the situation of rights or interests, other than by way of security, in or over immovable property is that of the immovable property;

(b) the situation of rights or interests, other than by way of security, in or over tangible movable property is that of the tangible movable property;

(c) a debt, secured or unsecured, is situated in Nigeria where the creditor is resident in Nigeria, or has a permanent establishment in Nigeria to which the debt relates;

(d) shares or securities issued by any governmental, municipal or local authority, or by a body created by such an authority, are situated in the country of that authority or place where the authority is situated;

(e) subject to paragraph (d), registered shares or securities are situated where they are registered and, if registered in more than one register, where the principal register is situated;

(f) notwithstanding paragraph (e), shares or comparable interests in any foreign entity are deemed to be located in Nigeria, if, at any time during the 365 days preceding the alienation, more than 50% of the value of the shares or other interests is derived, directly or indirectly –

(i) through one or more interposed entities resulting in the change in direct or indirect ownership structure of a Nigerian entity, or
(ii) from immovable property or any other chargeable assets situated in Nigeria;

(g) subject to paragraph (d), shares or comparable interest in an entity is situated in Nigeria, if the entity is a Nigerian company or the owner of beneficial interest in the shares or comparable interest is resident in Nigeria or the owner has a permanent establishment in Nigeria to which the shares relates;

(h) a ship or aircraft used in international traffic is situated in Nigeria where the owner is resident in Nigeria or the owner has a permanent establishment in Nigeria to which the ship or aircraft relates;

(i) interest or right in or over a ship or aircraft used in international traffic is situated in Nigeria where the person entitled to the interest or right is resident in Nigeria or has a permanent establishment in Nigeria to which the interest or right relates;

(j) the situation of goodwill of a trade, business or professional asset is at the place where the trade, business or profession is carried on;

(k) patents, trademarks or designs are situated where they are registered, and if registered in more than one register, where each register is situated;

(l) copyright, franchises, rights or licences to use any copyright material, patent, trademark, or design are situated in Nigeria where they, or any rights derived from them, are exercisable in Nigeria;

(m) a judgement debt is situated where the judgement is recorded; and