In a recent circular (FIRS Circular 2021/02), the FIRS outlined the procedures for donations to Funds, Bodies and Institutions of a public character to be tax deductible in the hands of the donors.
Section 25 of the Companies Income Tax Act (CITA) provides that donations made to bodies listed in Schedule 5 of the Act, are tax deductible. The section also empowers the Minister of Finance to amend Schedule 5. Organisations that can be added to the list are those established in Nigeria which are of a public character.
The Minister subsequently issued Regulations that expanded the list, and highlighted some administrative procedures to certify eligibility of the institutions in the expanded list, to receive tax deductible donations. The circular seeks to clarify these matters.
Find out more in the Tax Alert below: