15/12/2025
This is the first part of our 6-Monday “Misconceptions Clarified” series on the Nigeria Tax Act 2025. We are addressing the most popular misconception: that the government will deduct taxes directly from personal or corporate bank accounts.
The Nigeria Tax Act 2025 does not authorise automatic tax deductions from taxpayers’ personal or corporate bank accounts. Nigeria operates a self-assessment system under which taxpayers are required to declare income, file returns, and pay assessed taxes in line with applicable laws and rates.
Enforcement actions, including recovery of tax liabilities from taxpayers' personal or corporate bank accounts, only arise after non-compliance and must follow established statutory procedures. Understanding this distinction is essential for individuals and businesses preparing for the new tax regime.
This series addresses one misconception each Monday, using the tax law as it is written, not as it is rumored.
Nigeria Tax Act 2025, tax compliance in Nigeria, Nigerian SMEs, personal income tax, business taxation, tax reforms 2025.