Overview

The Capital Gains Tax Act (Cap 354 LFN, 1990) is a Nigerian federal law that establishes a tax on capital gains arising from the disposal of assets. Enacted on 1 April 1967, it applies to gains accruing on or after that date. The Act defines chargeable assets broadly, including all forms of property (except specific exemptions), whether located in Nigeria or abroad. Gains are calculated as the difference between disposal consideration and allowable expenditure. The standard tax rate is 10%. Key provisions cover computation rules, exemptions (e.g., charities, statutory bodies, retirement benefits, principal private residences, motor cars, gifts), reliefs (e.g., replacement of business assets, delayed remittances), and administrative measures (e.g., application of income tax rules, information requirements). The Act aims to ensure fair taxation of wealth increases from asset disposals.

Download