Nigeria: When foreign companies have a “fixed base” | KPMG | GLOBAL

Nigeria: Determining when foreign companies have a “fixed base”

Nigeria: When foreign companies have a “fixed base”

The Federal High Court, Lagos, reversed a decision of the Tax Appeal Tribunal in a case concerning whether a corporation had a “fixed base” in Nigeria, and concluded that the foreign corporation did not have a fixed base in Nigeria and thus was not liable for corporate income tax.


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The foreign company had entered into a contract with respect to the offshore aspect of engineering and constructing an offshore oil and gas terminal (the onshore portions were subject to separate contracts with other entities).

The Federal High Court explained that determining whether a company has a fixed base of business in Nigeria involves an examination of certain factors including: (1) the nature of the activities conducted by the foreign company in Nigeria; (2) how the activities are conducted (for example, whether employees or representatives of the company physically enter into Nigeria for the purpose of the foreign company’s business); and (3) whether the foreign company owns any business assets in Nigeria or operates from a physical location in Nigeria


Read an October 2015 report [PDF 24 KB] prepared by the KPMG member firm in Nigeria

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