NIGERIA TAX ACT 2025

An Act consolidates Nigeria's tax laws into a single framework to simplify tax collection. It targets businesses and individuals earning income in Nigeria, providing relief for small enterprises. This boosts government revenue and promotes fairness in taxation.

What Is This Policy?

The Nigeria tax act, represents a reform of the Nigeria tax system, consolidating multiple tax into one single act.

Who Does It Target?

The act is targeted at businesses and individual who earns income in Nigeria, it is designed to make sure companies and people pay fair taxes on their profits and earnings

What Does It Aim to Achieve?

It aims to simplify the tax system, boost government revenue and promote fairness

Key Features

Consolidation of tax law: brings together multiple existing tax laws into one unified framework Revenue sharing formula: introduces a new system for sharing tax revenue fairly among the tiers of Government Protection for small businesses & low income Earners: provides tax reliefs and exemptions Enhanced enforcement powers: Strengthens the authority of the FIRS

Current Status

Rollout Stage: active in its initial stage Coverage: applies nationwide Beneficiaries to Date: low income earners Funding: revenues generated

How to Access

Official gazette Legal & tax advisory Firm National assembly website: The consolidated text of the Act is available under the “Laws of the Federation” section.

Important Terms

Term 1-Taxpayer Obligations: All individuals and businesses earning income in Nigeria must register with the Federal Inland Revenue Service (FIRS), file annual returns, and pay taxes promptly. Non-compliance attracts penalties, interest charges, and possible prosecution. Term 2- Repayment & Relief Conditions: Taxpayers who overpay are entitled to refunds or credits against future liabilities, but only if claims are filed within the statutory period (usually 3 years). Reliefs and exemptions apply to low-income earners and small businesses under specified thresholds.

Official Resources

Website: Federal Inland Revenue Service (FIRS) – hosts tax laws, guidelines, and compliance updates. Federal Inland Revenue Service (FIRS) Headquarters: Revenue House, 15 Sokode Crescent, Wuse Zone 5, Abuja, Nigeria Phone: +234 (0) 9461 7700 Email: [email protected] Contact: +234 (0) 9461 7700

Legal Framework

The Nigeria Tax Act 2025 is part of the Tax Reform Acts 2025 package, which consolidates and replaces the Companies Income Tax Act (CITA), the Personal Income Tax Act (PITA), the Petroleum Profits Tax Act, and related statutes. Constitutional authority derives from the Second Schedule of the 1999 Constitution (exclusive federal taxation powers). The Act aligns with the OECD/G20 BEPS framework, the IMF revenue administration best practices, and the Nigeria Tax Administration Act 2025.