Section 82 Nigeria Tax Act 2025

Section 82 of the Nigeria Tax Act 2025 is about Expense deductibility. It provides as follows:

(1) For the purpose of determining income tax, section 20 of this Act shall be read in conjunction with the provisions of this subsection as regards the followings –

(a) all rents and royalties the liability for which was incurred by the company during that period in respect of crude oil sold, condensate sold and natural gas sold or delivered or disposed of in any other commercial manner and where a petroleum mining lease includes payments to the Federation Account related to production sharing, profit sharing, risk service contracts or other contractual features and the company has incurred liability for such payments and such payments were made;

(b) any amount contributed to any fund, scheme or arrangement approved by the Commission or Authority for the purpose of providing for –
(i) abandonment and decommissioning,
(ii) petroleum host communities development trust, or
(iii) environmental remediation; and

(c) any other deduction as may be prescribed by the Minister by order published in the Official Gazette.

(2) For the purpose of determining income tax, section 21 of this Act shall be read in conjunction with the provisions of this subsection as regards the followings –
(a) any expenditure for the purchase of information relating to the existence and extent of petroleum deposits, other than for the acquisition of geological,
geophysical and geochemical data or information;

(b) any expenditure incurred as a penalty including natural gas flare fees or any such imposition relating to natural gas flare;

(c) production bonuses, signature bonuses paid for the acquisition of, or of rights in or over, petroleum deposits, signature bonuses or fees paid for renewing petroleum mining lease or petroleum prospecting licence or fees paid for assigning rights to another party including for marginal fields; and

(d) any tax inputted into a contract or an agreement on a net of tax basis
and paid by a company on behalf of the vendor or contractor.

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