Nigeria: Petroleum investment allowance | KPMG | GLOBAL

Nigeria: Petroleum investment allowance

Nigeria: Petroleum investment allowance

The Nigeria Tax Tribunal, Lagos, issued a taxpayer-favorable decision concluding that the taxpayer’s “petroleum investment allowance” with respect to assets used in its “gas-to-liquid” project could be 35%, as claimed by the taxpayer, and not limited to 5% as asserted by the tax authority.


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The tribunal rejected the tax authority’s assertion that the taxpayer could not both claim the petroleum investment allowance under Nigeria’s corporate income tax law provisions and also treat the subject assets as “chargeable capital allowances” under Nigeria’s petroleum profit tax regime.  

The case identifying information is: Chevron Nigeria Ltd. v. Federal Inland Revenue Service (28 October 2015)


Read a November 2015 report [PDF 47 KB] prepared by the KPMG member firm in Nigeria.

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