Section 14

(1) Where an employer incurs an expense in the provision of any
kind benefit or perquisite, other than the provision of living accommodation to which
this section relates, the following provisions shall apply –
(a) where any asset belonging to the employer is used wholly or partly in
the making of such provisions, the employee is deemed to have earned
annual benefit of an amount equal to 5% of the amount expended by the
employer in acquiring the asset, but if that amount cannot be so ascertained,
5% of the market value of the asset at the time of the acquisition, as may be
determined by the relevant tax authority;
(b) where any sum by way of rent or hire is payable by the employer in
respect of any such asset, the employee is deemed to have earned annual
benefit of an amount equal to the annual amount of the rent or hire payable
by the employer on the asset; and
(c) in any other case, the employee is deemed to have earned annual
benefits equal to the annual amount expended by the employer in connection
with the benefit thereon.
(2) The amount of benefit under subsection (1)(a) shall be reduced by so
much of any expense made by the employee in respect thereon.
(3) The provisions of this section shall not apply to any expenses incurred
by an employer –
(a) in connection with the provision of meals in any canteen in which
meals are provided for the staff generally or meal vouchers for employees;
(b) in the provision of any uniform, overall or other protective clothing,
work tools or work equipment; or
(c) in connection with change in place of residence of the employee by
reason of a change of the employee's employment or place of exercising
the employment.
Nigeria Tax Act, 2025 2025 No. 7 A 401
(4) A reference in this subsection to expenses incurred in connection
with any matter includes a reference to a proportion of any expenses incurred
partly in connection with that matter.
(5) A reference in this section to anything provided for an employee shall,
unless the reference is expressly to something provided for the employee, be
construed as including a reference to anything provided for the spouse, family,
servant, dependant or guest of that employee by the employer.
(6) Where premises in Nigeria are made available by an employer to the
employee, the spouse or family, and the employee –
(a) pays no rent for the premises , or
(b) pays a rent less than the annual rental value of the premises,
the employee shall be treated as being in receipt of additional emolu-
ments equal to the annual rental value of the premises, subject to a maximum
of 20% of annual gross income from the employment, excluding the rental
value.
(7) In this section, "annual value of the premises" means –
(a) in relation to premises that are subject to a law governing assessment
of local rates, the annual rental value of the premises as determined for the
purposes of local rates under that law;
(b) in any other case, the annual rental value as determined by the
relevant tax authority; and
(c) a reference in this section to annual value shall include a reference,
where applicable, to such proper proportion of the annual value in relation
to –
(i) a period of occupation within a year,
(ii) the part of the premises occupied, or
(iii) both a period of occupation within a year and the part of the
premises occupied, as may be determined by the relevant tax authority.