The deduction for R&D has been increased to 15% of turnover, up from the previous 10% of profit. However, there’s a catch: if you later sell the invention or patent that resulted from the R&D, the proceeds from that sale will be taxable.
- Scenario: A tech firm with a turnover of ₦1 billion can now deduct ₦150 million for its R&D expenses, a significant increase.
