Capital Gains Tax Form (Nigeria)

A Capital Gains Tax Form in Nigeria reports the figures a taxpayer must declare so the correct liability can be assessed.

Capital gains tax in Nigeria is charged at a flat rate of 10% on chargeable gains under Section 2 of the CGT Act. Chargeable gains arise from the disposal of chargeable assets, which include land and buildings, goodwill, intellectual property rights, business assets, and shares in private companies (the Finance Act 2021 brought disposals of shares in private companies within the CGT net). Gains from the disposal of quoted shares on the Nigerian Stock Exchange (NGX) are exempt under Section 30 of the CGT Act, as are gains on principal private residences and compensation for personal injuries.

The FIRS administers CGT for corporate taxpayers under the Federal Inland Revenue Service (Establishment) Act 2007 and the Joint Tax Board coordinates CGT administration for individuals across the 36 State Internal Revenue Services (SIRS) and the Federal Capital Territory Inland Revenue Service (FCT-IRS). In practice, for individuals disposing of property located in a state, the relevant SIRS may assert jurisdiction.

The Finance Acts 2019, 2020, 2021, 2022, and 2023 have progressively expanded CGT coverage, tightened administration, and aligned Nigeria's CGT regime more closely with international practice. Professional advice from a Chartered Accountant registered with the Institute of Chartered Accountants of Nigeria (ICAN) or a Tax Practitioner registered with the Chartered Institute of Taxation of Nigeria (CITN) is recommended for complex CGT computations.

The legal framework governing the Capital Gains Tax Form (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Capital Gains Tax Form (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Capital Gains Tax Act (Cap. C1, LFN 2004) sets the foundational requirements.

A Nigeria CGT form is required in the following circumstances.

When an individual or company sells, transfers, gifts, or otherwise disposes of a chargeable asset such as land, a building, goodwill, intellectual property rights, or shares in a private company. The disposal triggers a CGT liability (where the disposal consideration exceeds the allowable cost) that must be computed and reported to the FIRS or the relevant SIRS.

When a company is completing an annual self-assessment return under the Companies Income Tax Act Cap C21 LFN 2004 and has realised capital gains during the assessment year. The CGT computation is included as part of the annual CIT return filed with the FIRS.

When a business disposes of fixed assets — plant, machinery, vehicles, or land and buildings — as part of a business sale or restructuring. The CGT computation documents the acquisition cost, allowable improvements, and net gain for FIRS review.

When rollover relief under Section 32 of the CGT Act is being claimed on the reinvestment of disposal proceeds into a replacement qualifying business asset, the CGT form documents the basis of the relief claim.

For real estate transactions in Nigeria, including sales of land under the Land Use Act 1978, the purchaser's solicitor will typically require evidence that the vendor has settled any outstanding CGT liability on the property before completing the conveyance and filing the Certificate of Occupancy transfer at the State Lands Registry.

Parties in Nigeria should prepare a Capital Gains Tax Form (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A complete Nigeria CGT computation and declaration should contain the following elements.

Taxpayer identification: Full legal name, Tax Identification Number (TIN) issued by the FIRS, address, and taxpayer type (individual, company, partnership, or trustee). The TIN is mandatory for all FIRS filings under the TIN Decree 1996.

Asset description: Full description of the chargeable asset disposed of, including for land the property address, plot number, and Certificate of Occupancy (C of O) number; for shares, the company name, RC Number, number of shares, and class.

Disposal details: Date of disposal, disposal consideration received (or market value for connected-party transactions), and name of the buyer.

Acquisition details: Date of original acquisition, cost of acquisition, and all allowable incidental costs of acquisition (legal fees, survey fees, registration fees, and stamp duty paid on acquisition).

Capital improvements: Documented capital expenditure on the asset since acquisition, with receipts, that has not previously been deducted for income tax purposes.

Chargeable gain computation: Disposal consideration minus total allowable costs = chargeable gain. Where there is a capital loss, the loss is carried forward under Section 8 of the CGT Act.

Relief claims: Rollover relief (Section 32), principal private residence exemption (Section 26), or any other exemption claimed under the CGT Act, with supporting documentation.

CGT liability: Chargeable gain multiplied by 10%. Payment reference via Remita confirming settlement of the liability to the FIRS or the relevant SIRS.

Additional compliance elements for a Capital Gains Tax Form (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.