a. Reliefs and Incentives Available to Corporate Taxpayers:

Reliefs are claims or provisions in tax laws that reduce the amount of Assessable Profits in the Year of Assessment under consideration. Incentives aim to reduce the amount of income tax payable in the Year of Assessment under consideration.

Reliefs available to corporate taxpayers:

1. Loss Relief – Business losses are deductible from the same business profit indefinitely, reducing Assessable Profit in the computation of Total Profit.
2. Application of the Right of Election – Taxpayers may apply for this relief on commencement if the total Assessable Profit for the second and third years of assessment is less than what was computed using the normal commencement rule.
3. Capital Allowance – This relief is for companies that have incurred qualifying capital expenditure. It is deducted from Assessable Profit to determine Total Profit.
4. Carry Backward of Unclaimed Capital Allowance on Cessation – On business cessation, unclaimed capital allowance can be carried back against the remainder of Assessable Profit of the preceding five years, leading to a possible tax refund.
5. Roll-Over Relief – When proceeds from disposing of chargeable assets are reinvested in similar assets, chargeable gain is deferred, and Capital Gains Tax may not be computed.
6. Investment Allowance – An additional allowance to the amount of Capital Allowance, also deducted from Assessable Profit.

Incentives available to corporate taxpayers:

1. Memorandum of Understanding (MOU) Credit – Available to joint venture operators in the petroleum industry, deducted from assessable tax to determine chargeable tax.
2. Investment Tax Credit – Available to production-sharing contract operators to reduce assessable tax.
3. Pioneer Status – Companies with this status are tax-exempt for an initial three years, extendable by two years.
4. Small Business Rates – A reduced tax rate of 20% (instead of 30%) applies for small businesses with turnover of ₦1,000,000 or below, initially for three years, extendable by two years.
5. Exemption from Minimum Tax – Certain companies are exempt from minimum tax, allowing them to pay lower normal tax if applicable.
6. Double Taxation Relief – Mitigates the impact of double taxation on foreign income, subject to both foreign and Nigerian tax.

b. Conditions for Tax Incentives for Export-Oriented Businesses:

1. The company is 100% export-oriented.
2. The company must produce or manufacture goods for export, with export proceeds not less than 75% of total turnover for the year.
3. The company must repatriate at least 75% of export earnings to Nigeria and deposit them in a domiciliary account in a Nigerian bank.