… Company cars, accommodation and workplace benefits
Employees who receive company cars, accommodation, and other perks from their employers may face higher taxable income under Nigeria’s new tax regime, even when those benefits never reach their bank accounts as cash.
The implication is that employers may need to consider the tax consequences of how they provide benefits, rather than looking only at the cost of the perk.
“Although you didn’t receive actual cash, you got something valuable, and this value is what is subject to taxation,” said Habeeb Alabi, a tax specialist in Nigeria and the UK.
Under Section 14 of the Nigeria Tax Act 2025, an employer-owned asset provided for an employee’s personal use is valued for tax at 5 percent of its acquisition cost or its market value at acquisition, where the cost cannot be determined.
