NGOs Must Pay Tax - FIRS

The Federal Inland Revenue Service has affirmed that Non-governmental organisations in the country are not exempted from paying taxes.
According to FIRS, insinuations that NGOs, as not-for-profit organisations, are exempted from paying taxes are untrue.
Speaking to members of different NGOs during a sensitisation meeting in Abuja recently, the Acting Executive Chairman, FIRS, Mr. Kabiru Marshi, said “Nigerian tax laws do not necessarily exempt NGOs from paying taxes.
As an emerging economy, Nigeria is moving away from resource reliance and focusing more on sustainable sources of revenue, especially taxation. They cannot, therefore, afford to leave behind any taxpayer segment; neither can any group of taxpayers seek to exempt themselves from contributing to the growth of Nigeria through paying taxes, except as permitted by law he said.
Marshi, who was represented by the Coordinating Director, Modernisation Group, FIRS, Mr. Ossy Chuke, disclosed that NGOs are not exempted from paying taxes such as Value Added Tax on goods and services. They are also required to subtract and pay personal income tax from salaries and allowances paid to their employees, among others.
Marshi said the FIRS would be providing an elaborate explanation detailing the requirements of diverse organisations in the country with respect to the payment of taxes.
 “A more detailed presentation will be made on the tax obligations of the NGOs so that there is greater clarity on the part of taxpayers, tax officers, tax professionals and, of course, NGO operators,” he said.
Marshi told members of the NGOs that their tax files were now domiciled in the MTO and any such files yet to be sent to the office would be transferred soon adding that the sensitisation programme will “provide information on what types of entities constitute NGOs so that the FIRS can make clear which files are to be transferred to the MTO.”