Section 165 Nigeria Tax Act 2025

Section 165 of the Nigeria Tax Act 2025 is about Deduction for research and development. It provides as follows:

(1) Notwithstanding anything contained in section 20 of this Act, for the purpose of ascertaining the profit 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 incurred in that period by that company for research and development.

(2) The deduction to be allowed to a company under subsection (1) for any year of assessment shall not exceed an amount which is equal to 5% of the turnover for that year.

(3) Where a company to which this section applies subsequently sells or transfers the outcome of the research and development to another person for exploitation or commercialisation, the proceeds of such sale or transfer shall be taxed under Chapter Two of this Act.

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