JULY 2018
WHAT TYPE OF COMPANIES ARE ENTITLED TO 100% CAPITAL
ALLOWANCE UNDER THE COMPANIES INCOME TAX ACT IN NIGERIA?
OANDO PLC. V. FEDERAL BOARD OF INLAND REVENUE (2016)
6 N.W.L.R. (PT. 1509) 494 CA
Background
Companies' income tax is one of several taxes payable on the
profits of any company accruing in, derived from, brought into, or
received in Nigeria. The tax is regulated by the Companies Income
Tax Act Cap 60 Laws of the Federation of Nigeria, 1990 which has
now been amended by the Companies Income Tax (Amendment) Act 2007
("the Act"). The Act applies to all
companies incorporated in Nigeria excluding companies engaged in
upstream petroleum exploration and production activities. It also
applies to foreign companies that earn and/or derive their income
from Nigeria. All organizations limited by guarantee engaged in
profit making activities other than the promotion of their primary
objects are subject to the Act including liquidators, receivers,
