TAXATION OF INSURANCE BUSINESS IN NIGERIA




According to  Company Income Tax Act

16(1 )Notwithstanding anything to the contrary contained  in this Act, insurance business shall be
taxed as

a.An insurance company ,whether proprietary or mutual ,other than a life insurance company.

b.A Nigerian company whose profit  accrued in part outside Nigeria,  the taxable profit=Gross premium interest and other income receivable in Nigeria less reinsurance and deducting from the balance so arrived at, a reserve fund for unexpired risks at the percentage consistently adopted by the company in relation to its operation as whole for such risks at the end of the period for which the profit are being ascertained, subject to the limitation imposed in subsection(8)(a)

-The implication of the above is that Life  insurance business is seen as a separate business from other non-life insurance  business from tax perspective.

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Disclaimer: Obi Azubuike is not by this publication acting as a professional advisers and therefore not liable to any  damage whatsoever for your acting or refraining to act based on  this publication. Consult your professional for advice. 

copyright(c) 2016-Obi Azubuike

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