26/12/2025
🚨 Things to Note About Nigeria Tax Act (NTA), 2025 🚨
The Nigeria Tax Act (NTA), 2025 is a landmark reform that repeals and consolidates existing tax laws into one framework. Its goal: simplify Nigeria’s tax system, reduce the number of taxes, and boost transparency, compliance and revenue generation.
🔑 Key Highlights
âś… Consolidates multiple tax laws, eliminating duplication & nuisance taxes
âś… Institutionalises tax harmonisation across federal, state & local governments
🏢 Corporate
• Controlled Foreign Corporation (CFC) rules to counter profit shifting
• OECD BEPS Pillar 2: 15% minimum Effective Tax Rate (ETR)
• Corporate tax: 0% for small companies, 30% for large companies (possible cut to 25%)
• 4% Development Levy consolidating sectoral levies
👩‍💼 Individuals
• Progressive tax bands: 0% – 25%
• ₦800,000 tax‑exempt threshold
• Rent Relief: 20% of annual rent (max ₦500,000)
• CRA eliminated
đź’» Digital & Assets
• Taxation of digital/virtual assets, prizes, winnings, honoraria
• Expanded chargeable gains (shares, options, debts, FX, digital assets)
🌍 Non‑Resident Companies
• Tax on Nigerian permanent establishment profits
• Minimum tax: 4% of Nigerian income if no WHT applies
🌱 Sectoral Incentives
• 5‑year tax exemption for agriculture
• Extra deductions for wage awards & new hires (2023–2025)
• New Economic Development Incentive (EDI): 5% tax credit on qualifying capital expenditure
đź’ˇ VAT & Duties
• Broader input VAT recovery (services & fixed assets)
• Mandatory Electronic Fiscal Systems (EFS) for VAT reporting
• Stamp duty on loan capital > 12 months
🌿 Environmental Taxation
• 5% surcharge on fossil fuels
• Exemptions: LPG, CNG, kerosene, clean/renewable energy
đź“Š Strategic Implications
• Aligns with global best practices (OECD)
• Fairer system: burden shifts to high‑income earners & large corporations
• Encourages investment in priority sectors
• Strengthens anti‑avoidance & modernises tax administration
