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Nigeria Introduces Police Trust Fund Levy on Company Profits — Orbitax Tax News & Alerts

According to recent reports, Nigeria enacted the Police Trust Fund (Establishment) Act on 24 June 2019 to fund the training and welfare of Nigeria's police force. The Act provides the legal framework for the management and control of the Fund, as well as the source of funding, which includes, among others, a levy of 0.005% of the net profit of companies operating a business in Nigeria. It is understood that the levy is in addition to the standard corporate tax, although the Act does not set out key points, such as how the levy is to be calculated and collected. Based on the wording, it is assumed that the levy applies for all operations in Nigeria, including those of non-residents companies, although this has not been confirmed. Further details will be published after the regulations for the Fund are issued.