Did you know that by Section 23 of the Companies Income Tax Act (CITA) the profits of the Incorporated trustees, whether charitable, ecclesiastical, educational, are exempt from Companies Income tax obligation, so far as the profits are not derived from any business or trade carried out by the organization?

This means that monies coming to these bodies in the course of the actualization of their aims and objectives are not liable to income tax. However, if they venture into any form of business and generate profit, that specific profit on the business venture will be taxable. For example, if a Church runs a bakery or investment income.

Asides Income tax, they may also be liable to other kinds of tax e.g. Withholding taxes. They are to register with the FIRS and file their tax returns periodically including their audited account for the period.

This will help the authorities determine the tax liability of the Organization for the period, if any, and issue the Tax Clearance Certificate upon application.

For your Incorporated trustee registrations and all your tax needs, reach out to us today or visit our website at www.businesslegal.ng