FEDERAL INLAND REVENUE SERVICE
15 SOKODE CRESCENT, WUSE ZONE 5, P.M.B 33, GARKI, ABUJA, NIGERIA
INFORMATION CIRCULAR
NO: 2021/02 PUBLICATION DATE : 31ST MARCH 2021
SUBJECT: REQUIREMENTS FOR FUNDS, BODIES OR INSTITUTIONS
FOR LISTING UNDER THE 5TH SCHEDULE TO THE
COMPANIES INCOME TAX ACT, CAP C21 LFN, 2004
This Circular is issued for the information and guidance of the general public,
taxpayers and tax practitioners in line with the provisions of the Companies
Income Tax Act (CITA). This Circular amends, updates or replaces contents of
any other Circular, Notice or Publication previously issued by the Service that is
inconsistent with its contents to the extent of such inconsistency.
1.0 Introduction
The objective of this Information Circular is to provide a detailed procedure for
Funds, Bodies and Institutions on how to be listed under the Fifth Schedule
pursuant to the provisions of Section 25 of Companies Income Tax Act (CITA),
CAP C21, LFN 2004 (as amended) and the Requirements for Funds, Bodies or
Institutions (Under the 5th Schedule to the Companies Income Tax) Regulations
2011
2.0 Background
Section 25 of CITA provides the legal framework for Companies to make
charitable donations to funds, bodies or institutions listed in the Fifth Schedule
to the Act. As such, the donations made in this regard are tax deductible.
Section 25(6) empowers the Minister to make amendments to the Fifth
Schedule by Order in the Federal Gazette in any manner whatsoever.
Accordingly, the amendment to the Fifth Schedule shall only cover such funds,
statutory bodies or institutions of a public character established in Nigeria.
3.0 Eligibility Criteria
The following are the three categories of entities that may apply to be listed
under the Fifth Schedule:
(1) a public fund established in Nigeria; or
(2) a statutory body or institution in Nigeria; or
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(3) an ecclesiastical, charitable, benevolent, educational or scientific
institution or body of a public character, established in Nigeria.
4.0 General Criteria
Pursuant to the provisions of Sections 25 and 105 of CITA, a Fund, Body or
Institution seeking to be listed under the Fifth Schedule must be a fund, body or
an institution of a public character with the following features:
a. it is registered in accordance with the relevant law in Nigeria;
b. it does not distribute or share its profit in any manner to members or
promoters;
From the above, it is clarified that for an organisation to be regarded as of public
character, it must have first registered in Nigeria as required by the relevant
laws. After such registration, the company shall not distribute or share its
profit in any manner. Its income shall be wholly used for the objects of the
organisation or institution in the interest of the public.
Note that distribution of assets, whether in cash or in kind e.g. gifting a vehicle
or any asset for the personal use of the promoter or members shall be construed
as distribution of profit. Any organisation that engages in such practice would be
deemed not to be of public character and therefore would not be listed under
the 5th schedule and be treated like a regular business outfit for the purposes of
tax.
5.0 The Benefits of Listing Under Fifth Schedule of CITA
In accordance with Section 25(1) of CITA, donations received by Funds, Bodies
or Institutions in Nigeria listed under the Fifth Schedule are tax deductible by
the person or entity making such donation subject to the restrictions prescribed
in Section 25 (2) and (3) of CITA.
6.0 Approval Procedure
6.1 Application is to be made on the Application Form for Listing Under the
Fifth Schedule (which can be downloaded on FIRS website
[Link]) with a non-refundable payment of the sum of Two
Hundred and Fifty Thousand Naira Only (N250,000.00) or such
other amount as the Board may, from time to time, determine to the
relevant account.
6.2 The application shall be completed in accordance with the Checklist set
out in schedule 1 to the Regulations on Requirements for Funds, Bodies
or Institutions (Under the 5th Schedule to the Companies Income Tax
Act) Regulations, 2011. The documents and information required are:
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a. A Certified True Copy (CTC) of Certificate of Registration
(incorporation)
b. An application letter clearly stating what the company is applying
for, relevant law and indicate whether or not it has commenced
operation
c. Constitution/Memorandum and Articles of Association
d. Names, addresses and telephone numbers of the members of the
Board of Trustees/Directors of the company/association
e. Evidence of payment of Personal Income Tax of the organisation
f. Tax Identification Number (TIN) of the organisation if employees
are up to five (5)
g. A statement of the nature of operation of the
company/association
h. Registered address and principal place of business
i. Financial Statements from inception of operation
j. Details of previous activities before current registration and
affiliated companies
k. Record of performance in corporate social responsibility
6.3 The application and the supporting documents shall be reviewed to
determine if the Fund, Body or Institution meets the requirements set
out in the relevant regulations and laws.
6.4 Where the application is granted, the Service shall issue a Certificate to
that effect and notify the Minister in accordance with the relevant
regulations.
6.5 Where the application is denied, the Service shall notify the applicant
of such denial within 30 working days.
6.6 The Minister may by Order in a Federal Gazette amend the Fifth
Schedule to list such Fund, Body or Institution under the Schedule.
7.0 Administration of the Tax Deductible Certificate
7.1 The Tax Deductible Certificate shall be valid for a period of three (3)
years in the first instance, subject to a renewal after every three
years upon satisfactory performance and compliance with the relevant
laws, rules and regulations.
7.2 The Certificate may be revoked, deduction of donation may be refused
or an entity may be delisted where the fund, body or institution no
longer meets the requirements for which the certificate was granted,
notwithstanding that the tenure of the certificate is still be subsisting at
that time.
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7.3 Where a Certificate is revoked or deductions is disallowed, the Service
shall notify the Minister within 30 days of such decision and give reasons
for the action.
7.4 A Fund, Body or Institution issued with the Tax Deductible Certificate
shall file returns in compliance with the tax laws.
8.0 Renewal of a Tax Deductible Certificate
An expired Certificate is renewable upon payment of a non-refundable fee of
One Hundred and Fifty Thousand Naira Only (N150,000.00) provided the
NGO meets with requirements of the law and regulations.
Documents required for renewal include:
a. Tax Clearance Certificate (TCC);
b. Current Financial Statement;
c. Compliance report of activities covering the expired period and other
evidence that such activities are carried out;
d. Evidence of payment of the non-refundable renewal fee; and
e. Copy of the expired Tax Deductible Certificate.
9.0 Amendment or Revision of the Circular
The Service may, at any time, withdraw or replace this Circular or publish an
amended or updated version.
10.0 Enquiries
Any request for further information or clarification on this Information Circular
should be directed to the:
Executive Chairman,
Federal Inland Revenue Service,
Revenue House, No 15 Sokode Crescent,
Wuse Zone 5, Abuja.
Or
Director, Tax Policy and Advisory Department,
Federal Inland Revenue Service,
Revenue House, No 12 Sokode Crescent,
Wuse Zone 5, Abuja.
Or
Visit our website: [Link]
Email: tpld@[Link]
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FEDERAL INLAND REVENUE SERVICE
APPLICATION TO BE LISTED UNDER THE 5TH SCHEDULE TO COMPANIES INCOME
TAX ACT (CITA), CAP C21, LFN 2004 AS AMENDED
PART A: PARTICULARS OF APPLICANT
a) Name of Fund/Body/Institution________________________________________________________
b) Registration Number________________________________________________________________
c) Tax Identification Number____________________________________________________________
d) Registered Address (not P.O. Box) ____________________________________________________
e) Business Address (not PO. Box)_______________________________________________________
f) Phone Number____________________________________________________________________
g) Email Address ____________________________________________________________________
h) Date or Commencement of operations (DD/MM/YYYY) ____________________________________
Status of Application (tick as applicable) First Time Application
Renewal
i) Particulars of Previous Certificate (if any):
Certificate Number____________________ Date of Issue________________________
PART B: LIST OF DOCUMENTS TO BE ATTACHED TO THE APPLICATION:
The list of documents required to accompany the application is as contained in the Circular.
CERTIFICATION:
I certify that the information given above is to the best of my knowledge correct. There are no other facts
the omission of which would be misleading.
Signature of Principal Officer______________________
____________________________ Full Name_____________________________________
Official Stamp & Date Designation____________________________________
