Taxation of Non-Governmental Organisations and Accountability in the South East Zone

This study examines the tax obligations of non-governmental organisations (NGOs) and their implications for financial accountability in the South East geopolitical zone of Nigeria. NGOs in Nigeria operate within a complex tax environment: while they may qualify for income tax exemptions under Section 26 of the Companies and Allied Matters Act on certain income streams, they remain liable for withholding tax on payments to contractors, PAYE deductions from employee salaries, and VAT on commercial activities. Lack of clarity about these obligations and limited enforcement by tax authorities contribute to widespread non-compliance among the NGO sector. Using a PGD professional research design, the study conducts structured interviews with 40 NGO finance managers and external auditors operating across Anambra, Enugu, Ebonyi, Abia, and Imo states. Documentary review of tax exemption applications and published FIRS guidelines provides secondary data. Thematic analysis is employed for qualitative data, supplemented by descriptive statistics for survey items. The study expects to find that NGO finance staff lack clarity about their specific tax obligations and that many organisations have never engaged with the FIRS for formal exemption certification. Recommendations include publishing a plain-language NGO tax guide, establishing a dedicated FIRS NGO liaison desk, and requiring annual tax compliance certificates as a condition for receiving donor funds. Keywords: NGO taxation, tax exemption, accountability, South East Nigeria, civil society.