Petroleum Profit Tax (PPT)

Petroleum Profit Tax (PPT)
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Petroleum Profit Tax (PPT)


  • Introduction

Scope/Companies covered

This is applicable to all entities operating in the oil & gas upstream sector.


Rate of Tax

The rate is 85% for Joint Ventures of Taxable profits and 50 % for Production Sharing Contracts.


Enabling laws

Petroleum Profits Tax Act, Cap P13 LFN 2004 as amended to date.

Recent Amendments –

  1. Income and dividend received from Companies in the upstream will now be subject to relevant taxes as provided in other enabling tax laws.


  • Filing obligations

Payable on actual year basis in 12 equal monthly instalments of which the first instalment is due by the end of March.

Tax returns are filed on/before 31 May of every year.

  • Associated Penalties
  • Non-filing of returns

The Failure to file is N 10,000 for the initial default then N 2,000 for the following which the default continues.





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