An Appraisal of the Legal Framework for the Taxation of Non-Profit Organizations in Nigeria
Keywords:
Appraisal, Legal Framework, Taxation, Non-profit Organization, NigeriaAbstract
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.