Nigeria

Deductions for tax purposes are granted if the expenses meet the criteria for allowable deductions. Allowable deductions are expenses incurred wholly and exclusively in the production of taxable income. 

Employment expenses

NHF contributions, National Health Insurance Scheme contributions, life assurance premiums (including deferred annuities), national pension scheme contributions, and expenses which have been wholly and exclusively incurred in generating income from trade, business, profession, or vacation are deductible.    

Interest on loan for developing an owner-occupied residential house is deductible from employment compensation.

Personal deductions

Healthcare expenses

Medical expenses and insurance premiums are deductible.

Life insurance premiums

Relief for life insurance premiums (including deferred annuities) for the taxpayer and the taxpayer's spouse is restricted to the actual premium paid to an insurance company by the individual during the year preceding the year of assessment. In relation to a deferred annuity product, any portion withdrawn before the end of five years from the date the premium was paid will be subject to income tax at the point of withdrawal.    

Standard deductions

There is no blanket or standard deduction for expenses.

Personal allowances

The removal of the consolidated relief allowance and the introduction of the rent relief would mean that the marginal tax rate is between 0% to 25%  

* The rent relief will be granted provided that the individual accurately declares the actual rent paid and any other information required by the relevant tax authority. 

Business deductions

Examples of deductible business expenses include:    

• Interest on monies borrowed for business purposes.    

• Rent and premium payable on land or buildings occupied for the purpose of acquiring the income.    

• Repairs and maintenance expenses for premises, plant, or machinery used in generating income.    

• Costs incurred to establish, preserve, or defend title or rights over an asset  

• Salaries, wages, and other renumeration paid to employees and cost of benefits or allowances provided to employees.  

• Bad debts.