A common query in Nigeria relates to whether there is a maximum cap on insurance premium relief and whether coverage extends to dependants.
Section 30(2)(a)(v) of the Nigeria Tax Act, 2025 allows eligible deductions for:
The legislation does not impose a maximum cap on the deductible amount. However, the scope is limited strictly to:
Premiums paid for children do not qualify for relief under this provision.
Employers must ensure that only qualifying premiums are included when applying deductions, as extending relief to non-eligible dependants would result in non-compliance.
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