Nigeria: Tax treatment of statutory levy to support research and development

Nigeria has been directed to begin collection and remittance of a statutory levy.

Nigeria has been directed to begin collection and remittance of a statutory levy.

The National Agency for Science and Engineering Infrastructure (established to foster the research and development of capital goods, production, and reverse engineering) and the Federal Inland Revenue Service have been directed to begin collection and remittance of a statutory levy that will allow the agency to achieve its mandate.

Commercial companies and firms that meet a ₦100 million turnover threshold are subject to the levy (imposed at a rate of 0.25%). The levy is a tax-deductible expense.

Read an August 2021 report [PDF 998 KB] prepared by the KPMG member firm in Nigeria

 

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