It is governed by Capital Gains Tax Act, Cap C1 LFN 2004 (as amended)
Capital Gains Tax is charged at a flat rate of 10% of chargeable gains
All chargeable assets are subject to Capital Gains Tax when disposed at a gain, except those specifically exempted by the Act
Chargeable assets include all forms of property whether or not situated in Nigeria
The due date for filing return and payment of the tax is the same as in Companies Income Tax
Allowable expenditure for the purpose of CGT includes fees, commissions or remunerations paid for professional services and cost of transfer
Gains exempted from CGT include those arising from disposal of decorations awarded for valour and gallant conduct, life insurance policy, Nigerian government securities, stock and shares etc.
Gains shall not be chargeable if it accrues to some organizations provided the gain is not derived from any disposal of any asset acquired in connection with any trade carried on by the organization, e.g.
An ecclesiastical, charitable or educational institution of a public character
Statutory registered friendly society
Cooperative society registered under Cooperative Societies Law of any State
Trade union registered under the Trade Unions Act