- Non-Profit Organizations play a crucial role in societal development by focusing on areas like education, healthcare, religion, and social welfare
- These organizations aim to serve the public good rather than distribute profits
- In Nigeria, NPOs include churches, mosques, charitable foundations, NGOs, and community-based organizations
- Nigerian tax laws offer significant exemptions to NPOs but they still face some tax obligations
- The tax obligations of NPOs depend on their activities, income sources, and how the income is used
- The article discusses the taxation framework for NPOs in Nigeria, including exemptions, obligations, and compliance practices
- NPOs are not completely exempt from Value Added Tax
- Donations, gifts, and grants to NPOs are VAT exempt
- Fees from non-charitable goods or services are taxable at a 7.5% standard rate
- Income from core charitable activities is exempt from VAT
- A church selling bakery goods to the public must apply VAT to these sales
Source: africataxreview.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
