According to section 13(2) of the Companies and Allied Matters Act, a foreign company will be subject to tax in Nigeria:
- If that company has a fixed base in Nigeria to the extent that the profit is attributable to the fixed base;
- If it does not have a fixed base in Nigeria but habitually operates a trade or business through a person in Nigeria authorized to conclude contracts on its behalf or on behalf of some other companies controlled by it or which have controlling interest in it or habitually maintains a stock of goods or merchandise in Nigeria from which deliveries are regularly made by a person on behalf of the company to the extent that the profit is attributable to business or trade activities carried on through that person;
- If that trade or business or activities involve a single contract for surveys, deliveries, installations or construction; the profit from that contract.
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Adepetun Caxton-Martins Agbor & Segun
9th Floor, St. Nicholas House, Catholic Mission Street, Lagos Island, Lagos State, Nigeria.
Telephone: +234 (1) 462 2094; 462 2480; 740 6743 Fax: +234 (1) 461 3140