Section 164

(1) Subject to the provisions of this section and notwithstanding Deductible
anything contained in section 20 of this Act, for the purposes of ascertaining donations
the profits or loss of any company for any period from any source chargeable
with tax under Chapter Two of this Act, there shall be deducted the amount of
any donation made for that period by that company to any fund, body or
institution in Nigeria to which this section applies.
(2) Without prejudice to section 21 of this Act, any donation made by a
company pursuant to subsection (1) may be deducted from the profits of that
period notwithstanding that the donation is of a revenue or capital nature.
(3) This section shall apply to donations made to –
(a) public funds;
(b) statutory bodies or institutions;
(c) religious, charitable, educational and scientific institutions, established
in Nigeria;
A 480 2025 No. 7 Nigeria Tax Act, 2025
Cap. D9, (d) bodies recognised under the Diplomatic Immunities and Privileges
LFN, 2004 Act; or
(e) any pandemic, natural disaster or other public emergency interven-
tions.
(4) A company making a deduction for a donation shall provide requisite
document evidencing the donation to the relevant tax authority.
(5) The total deduction to be allowed to a company, under this section,
for any year of assessment, shall not exceed an amount equal to 10% of the
profit before tax of that company for that year.
(6) In the case of a donation other than in cash, the value for the purpose
of this section shall be the lower of the market value at the time of the donation
or the consideration paid for the item when it was acquired.