What is Tertiary Education Tax?
Tertiary Education Tax (EDT) is a tax imposed on all Assessable profits of companies registered in Nigeria. The funds collected are used to rehabilitate, restore, and consolidate compliance in Nigeria's tertiary education sector.
Rate
The tax is charged at 2% (now 2.5% under Finance Act 2021) or 3% (Finance Act 2023) of the assessable profit of a company. (Note: Please verify the latest rate from the current Finance Act).
Who contributes?
- Universities (2 parts)
- Polytechnics (1 part)
- Colleges of Education (1 part)
Filing & Remittance
- Filing: Filed alongside the Companies Income Tax (CIT) returns.
- Deadline: Within 6 months of the end of the company's accounting year.
- Platform: TaxPro-Max.
Penalties
Failure to pay within the stipulated time attracts:
- First Offense: ₦10,000 (or as amended).
- Interest: At the prevailing commercial rate.