(1)
Subject to the provisions of this section and notwithstanding anything contained in section 20 of this Act, for the purposes of ascertaining the profits or loss of any company for any period from any source chargeable with tax under Chapter Two of this Act, there shall be deducted the amount of any donation made for that period by that company to any fund, body or institution in Nigeria to which this section applies and —
"other rank" has the meaning assigned to it by the Armed Forces Pension Act;
"personal emolument" means wages or salaries and includes allowances, benefits in kind, gratuities, superannuation or pension or pension schemes and any other income derived by reason of employment as the rank. '"''"
(2)
Without prejudice to section 21 of this Act, any donation made by a company under subsection (1) of this section may be deducted from the profits of that period notwithstanding that the donation is of a revenue or capital nature.
(3)
This section shall apply to donations made to —
(a)
public funds ;
(b)
statutory bodies or institutions ;
(c)
religious, charitable, educational and scientific institutions, established in Nigeria ;
(d)
bodies recognised under the Diplomatic Immunities and Privileges Act ; or
(e)
any pandemic, natural disaster or other public emergency interventions.
(4)
A company making a deduction for a donation shall provide requisite document evidencing the donation to the relevant tax authority.
(5)
The total deduction to be allowed to a company, under this section, for any year of assessment, shall not exceed an amount equal to 10% of the profit before tax of that company for that year.
(6)
In the case of a donation other than in cash, the value for the purpose of this section shall be the lower of the market value at the time of the donation or the consideration paid for the item when it was acquired.