Nigeria: New corporate law allows for tax transparency at LLP level
Nigeria: Law allows for tax transparency at LLP level
Newly enacted corporate law—the Companies and Allied Matters Act, 1990 (CAP C20, LFN 2004)—aims to provide efficiency with regard to the registration and regulation of corporate entities.
One provision under the new law allows for incorporation status for partnerships registered as limited liability partnerships (LLPs). For administrative purposes, LLPs are required to have at least two designated partners as compliance officers, and the LLP partners and the LLP itself have separate legal personalities. Thus, LLPs are intended to be able to have the benefits of both companies and partnerships—including tax transparency at the LLP level. This treatment is similar to that in the UK and United States, where LLPs have corporate personality and retain a tax pass-through status.
Read an August 2020 report prepared by the KPMG member firm in Nigeria
© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.