The Federal Inland Revenue Service (FIRS), has said that the nation’s tax laws did not exempt Non-Governmental Organisations (NGOs), from fulfilling their tax obligations.
This was stated at a sensitisation programme on Tax Obligations of NGOs in Nigeria, organised by the Service in Abuja.
At the programme, it was stated that the assumption that NGOs were exempted from paying taxes was incorrect and that Nigerian tax laws had not necessarily exempt them from paying all forms of taxes.
It was clarified that the tax laws recognise NGOs as basically not-for-profit entities, which are therefore exempted from paying income tax.
However, where an NGO engaged in activities from which it derived profit, it would be required to pay taxes on such profits, like any other profit-making entity.
