Section 57 Nigeria Tax Act 2025

Section 57 of the Nigeria Tax Act 2025 is about Effective tax rate. It provides as follows:

(1) Notwithstanding any provision of this Act or any other enactment, where, in any year of assessment, the effective tax rate of a company is less than 15%, such company shall recompute and pay an additional tax that makes its effective tax rate equal to 15%.

(2) The provisions of this section shall apply to –
(a) a company that is a constituent entity of an MNE group; and
(b) any other company with an aggregate turnover of 20,000,000,000 and above in the relevant year of assessment.

(4) For the purposes of this section –
“effective tax rate” means the rate produced by dividing the aggregate covered tax paid by a company for a year of assessment by the profits of the company; and

“profits” means the net profits before tax as reported in the audited financial statement less 5% of depreciation and personnel cost for the year.

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