An Appraisal of the Legal Framework for the Taxation of Non-Profit Organizations in Nigeria

Authors

  • Meshach Nnama Umenweke Faculty of Law, Nnamdi Azikiwe University, Awka, Anambra State
  • Uchenna Maryjane Anushiem Chukwuemeka Odumegwu Ojukwu University, Igbariam Campus, Anambra State Nigeria.

Keywords:

Appraisal, Legal Framework, Taxation, Non-profit Organization, Nigeria

Abstract

Over the years, there has been misconception on the status of Non-Profit Organization, Not-for-Profit Organization,
or Non-Governmental Organization as they may be called, with regards to their taxability. Many have argued that
NGOs are not to pay any form of taxes at all since they are engaged in humanitarian services which earn no taxable
income. However, there are instances where Non-Profit organizations engage in certain transactions that may likely
yield profits to the organization, like buying and selling assets and properties. Also, issues arise on the compulsory
requirements of Value Added Tax (VAT) and other tax laws in Nigeria which mandates payments of tax in certain
transactions that these Non-Profit Organizations would be definitely affected. The aim of this paper is to analyse the
legal frameworks governing the taxation of Non-Profit organizations in Nigeria and to recommend that these Non-
Profit organizations be strictly monitored, with tax obligations imposed only on transactions likely to yield profit to
the organization.

Author Biographies

  • Meshach Nnama Umenweke, Faculty of Law, Nnamdi Azikiwe University, Awka, Anambra State

    Meshach Nnama Umenweke, PhD, FICM, ACTI, BL, Professor of Law and Former Dean, Faculty of Law,
    Nnamdi Azikiwe University, Awka, Anambra State.

  • Uchenna Maryjane Anushiem, Chukwuemeka Odumegwu Ojukwu University, Igbariam Campus, Anambra State Nigeria.

    Uchenna Maryjane Anushiem, BA (Hons), LL.B(Hons), BL, LL.M, PhD, is a Lecturer 1, Department of
    Commercial and Property Law, Chukwuemeka Odumegwu Ojukwu University, Igbariam Campus, Anambra State Nigeria.

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Published

2024-11-15

Issue

Vol. 11 No. 4 (2024): NNAMDI AZIKIWE UNIVERSITY JOURNAL OF COMMERCIAL AND PROPERTY LAW

Section

Articles