![\"education](\"https:\/\/nigerianfinder.com\/wp-content\/uploads\/2018\/12\/education-tax-in-nigeria.png\")
<\/p>\nEducation Tax is a tax chargeable on all companies registered in Nigeria at chargeable profits as a contribution to the Education Tax Fund.<\/p>\n
This means that all registered companies in Nigeria are required to pay a percentage of their assessable profit into an Education Tax Fund. The tax is charged at 2%.<\/p>\n
In this post, we take a quick look at the education tax in the country and what it entails.<\/p>\n
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One of the first things you should know about the education tax is that it is payable within two months of an assessment notice from the Federal Inland Revenue Service (FIRS). This is in reference to the assessment and collection of tax section of the act, \u00a0This section states that<\/p>\n
1)\u00a0\u00a0\u00a0 The Federal Board of Inland Revenue (in this Act referred to as “the Board”) shall assess and collect from a company the tax imposed by this Act and accordingly-<\/p>\n
(a)\u00a0\u00a0 shall, when assessing a company for companies income tax or petroleum profit tax for an accounting period of the company, also proceed to assess the company for the tax due under this Act;<\/p>\n
(b) \u00a0 the provisions of the Act relating to the collection of companies’ income tax or petroleum profit tax shall, subject to this Act, apply to the tax due under this Act.<\/p>\n
(2)\u00a0\u00a0 The tax imposed by this Act shall be due and payable within 60 days after the Board has served notice of the assessment on a company.<\/p>\n
(3)\u00a0\u00a0 The Board may, for the purpose of assessment and collecting the tax imposed by this Act, devise such forms as it may deem necessary.<\/p>\n
Generally, many companies pay the tax on a self-assessment basis along with their CIT. For companies subject to PPT, tertiary education tax is to be treated as an allowable deduction. For other companies, income\/profit taxes are not deductible in arriving at taxable income.<\/p>\n
However, non-resident companies and unincorporated entities are exempt from the tertiary education tax.<\/p>\n
The Education Tax was as a result of the establishment of the Education Fund. The fund was established for the rehabilitation, restoration and consolidation of education in Nigeria and it is managed by the Board of Trustees established under section 4 of this Act.<\/p>\n
The Board of Trustees consist of a chairman; six persons each representing the six geo-political zones of the country;\u00a0 the Accountant-General of the Federation; a representative of \u2013\u00a0the Minister of Education; the Vice-Chancellors of the Nigerian Universities; Rectors of the Polytechnics in Nigeria; Provosts of the Colleges of Education in Nigeria; the National Chamber of Commerce, Industry, Mines and Agriculture (NCCIMA); the Manufacturers Association of Nigeria (MAN); the Academic Staff Union of Universities (ASUU); the Academic Staff Union of Polytechnics (ASUP);\u00a0 the Colleges of Education Academic Staff Union (COEASU);\u00a0 the National Union of Teachers (NUT); the Association of Nigerian Principals of Secondary Schools (ANCOPS); and the Executive Secretary of the Fund who shall serve as Secretary.<\/p>\n
Also, the membership of the Board of Trustees is expected to reflect the six geo-political zones of the Federation and the members of the Board of Trustees are appointed based on their considerable experience in both the public and private sectors specifically the business, financial and education sectors.<\/p>\n