Section 12 Nigeria Tax Administration Act 2025

Section 12 of the Nigeria Tax Administration Act 2025 is about Estimated income tax returns for companies engaged in liquefied natural gas. It provides as follows:

(1) Not later than two months after the commencement of each accounting period of any midstream company engaged in liquefied natural gas, the company shall submit to the Service an estimated returns of its profits or losses for that accounting period for the purpose of income tax.

(2) The estimated tax returns shall contain –
(a) a computation of its estimated revenue, adjusted profit or loss and estimated assessable profits of that period ;
(b) a computation of its estimated revenue from all sources including plants condensates, natural gas liquids, liquefied natural gas, liquefied petroleum gas and any other incidental income ;

(c) a statement of an estimate of amounts to be repaid, refunded, waived
or released to it, referred to in section 68 (2) of the Nigeria Tax Act, 2025,
during that period ;

(d) in connection with Part I of the First Schedule to the Nigeria Tax
Act, 2025, a schedule showing –
(i) the estimated residues at the end of that period in respect of its assets, all estimated qualifying capital expenditure incurred by it in that period,
(ii) the values of its assets, estimated by references to the provisions of that schedule, to be disposed of in that period,
(iii) the allowances due to it under that schedule for that period, and

(iv) a computation of estimated capital allowances for the period ;
(e) a computation of its estimated total profits for that period ;
(f) a computation of its estimated tax payable for that period ; and

(g) a declaration, that the estimate was made to the best of the ability of the person signing the declaration.

(3) Where, at any time during the accounting period, there is a material change in any of the parameters, the company shall submit a revised return to
reflect the change for such period.

(4) Every return made by a company engaged in liquefied natural gas
operations in fulfilment of the provisions of this section shall be subject to review and validation by the Service.

(5) Where a company does not provide the estimates required under subsections (1), (2) and (3), the Service may determine the estimates payable by the company on the best of judgement basis.

[/membership]