Section 55

(1) Any property held in trust for – Assets held
in trust for
(a) a religious or charitable institution of a public character, charities
(b) any statutory or registered friendly society,
(c) any co-operative society registered under the co-operative societies
law of any State, or
(d) any trade union registered under the Trade Unions Act, Cap. T14
LFN, 2004
shall not be subject to the provisions of Chapter Two of this Act, provided
that the gain is not derived from the disposal of an asset acquired in connection
A 426 2025 No. 7 Nigeria Tax Act, 2025
with any trade or business carried on by the institution, society or trade
union, and the gain is applied solely for the purpose of the institution, society
or trade union.
(2) Where such property ceases to be subject of such trust –
(a) the trustees shall be treated as if they had disposed of, and immediately
re-acquired the property for a consideration equal to its market value, any
gain on the disposal shall be treated as not accruing to the institution or
society; and
(b) any gain accruing directly or indirectly on that disposal shall be treated
as having accrued to the trustees and shall be chargeable gains for the
purposes of Chapter Two of this Act.
PART IX – RATES OF TAX
Rates of tax 56. Tax shall be levied, for each year of assessment in respect of total
for compa-
profits of every company, in the case of –
nies
(a) a small company, at 0%; and
(b) any other company, at the rate of 30 per cent from the commence-
ment of this Act.
Effective Tax 57. (1) Notwithstanding any provision of this Act or any other enactment,
Rate 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 N 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 aggre-
gate 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.
Rates of tax