Capital Transfer Tax in Nigeria: Rates, Exemptions & Compliance Guide

Capital Transfer Tax (CTT) is a Nigerian tax on the transfer of certain assets—real estate, shares, business assets, intellectual property, and certain life policies—between individuals or entities. It aims to generate revenue and promote equitable wealth distribution. Administered by the Federal Inland Revenue Service (FIRS).

Taxable Assets

• Real estate (land, buildings)
• Shares in Nigerian companies
• Business assets & goodwill
• Intellectual property (patents, trademarks, copyrights)
• Certain life insurance policies

Progressive Rates by Relationship (Key Update: Finance Acts)

Note: Rates have been amended by successive Finance Acts. Always verify current rates with FIRS or a tax professional.

Rates escalate with asset value bands (e.g., ≤₦1M, ₦1M–₦10M, >₦10M).

Key Exemptions

• Transfers via will or intestacy (inheritance)
• Transfers to registered charities/NGOs
• Transfers between corporate entities with no change in beneficial ownership/control

Compliance Obligations

1. Valuation: Based on open market value at transfer date.
2. Payment: Transferor pays within 30 days of transfer.
3. Filing: CTT Return to FIRS within 6 months of transfer.
4. Penalties: Late filing/payment attract interest and penalties.

Critical Advice

Nigerian tax law evolves rapidly (Finance Acts 2019, 2020, 2021, 2023). Engage a qualified tax practitioner or contact FIRS directly for the current rate schedule, allowable deductions, and electronic filing procedures before executing any significant asset transfer.