Tax Exemption For Non-Profit Organization.

DID YOU KNOW THAT?

As a Non-Profit Organization (NPO) or a Non-Governmental Organization (NGO) duly registered with CAC and with the Federal Inland Revenue Service (“FIRS”), you enjoy tax exemption only from charitable income which is not derived from any trade, business or commercial activity.

The income and benefits earned by NPOs/NGOs personnel are however liable to Personal Income Tax deductions.

Irrespective of its exemption from any tax obligations on its non-trading charitable income, every NPO/NGO is further required to file annual self-assessment Tax Returns with the Federal and State Tax Authorities.

Charitable Humanitarian Projects undertaken by NPOs/NGOs, which must be not-for-profit and in the public interest are Value Added Tax (“VAT”) zero-rated; meaning that they do not bear VAT nor pay VAT on such goods and services.

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Author: chas