Nigeria Tax Act, 2025
Comprehensive reform of Nigeria's tax code, consolidating multiple tax laws into a single, modern framework with simplified structures, updated rates, enhanced deductions, and provisions for the digital economy.
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Download Nigeria Tax Act (PDF)Official document from the Federal Government of Nigeria
Major Tax Reforms
Simplified Tax Structure
Consolidates multiple tax laws into a single, coherent framework that reduces complexity and improves understanding
New Tax Rates and Thresholds
Updates tax rates, brackets, and thresholds to reflect current economic realities and promote growth
Enhanced Deductions and Allowances
Expands available deductions and allowances to reduce tax burden and incentivize economic activities
Digital Economy Taxation
Introduces modern provisions for taxing digital services, e-commerce, and online business activities
Consolidated Tax Areas
The Nigeria Tax Act brings together previously separate tax laws into a unified code, creating consistency and reducing complexity across all tax types.
Who Benefits from the Reform
Individual Taxpayers
- Simplified tax calculations and filing
- Clear understanding of obligations
- Enhanced deductions and reliefs
- Reduced compliance burden
Small and Medium Enterprises
- Streamlined tax obligations
- Favorable rates for qualifying businesses
- Digital filing and payment options
- Reduced administrative costs
Large Corporations
- Unified tax compliance framework
- Clear rules for digital economy activities
- Enhanced certainty in tax planning
- Improved dispute resolution mechanisms
Significant Changes to Note
For Individuals
- New personal income tax brackets and rates
- Increased personal reliefs and allowances
- Simplified filing procedures
- Digital-first tax interactions
For Businesses
- Unified corporate tax framework
- Digital economy tax provisions
- Enhanced deductions for qualifying expenses
- Streamlined compliance requirements
Implementation Timeline
Act Signed into Law
2025
The Nigeria Tax Act was officially signed into law, consolidating Nigeria's tax code into a single, modern framework.
Transition Period
2025 - December 31, 2025
Taxpayers, tax professionals, and authorities prepare for new requirements. Systems are updated, and guidance materials are published.
New Tax Code Takes Effect
January 1, 2026
The consolidated Nigeria Tax Act comes into full effect, replacing previous separate tax laws with the new unified framework.
Related Tax Laws
Joint Revenue Board Act
Establishes unified framework for revenue coordination across government levels.
Nigeria Revenue Service Act
Transforms FIRS into Nigeria Revenue Service with enhanced powers.
Nigeria Tax Administration Act
Modernizes tax administration procedures and enforcement mechanisms.
Frequently Asked Questions
What is the Nigeria Tax Act 2025?
The Nigeria Tax Act, 2025 (NTA) is a landmark piece of legislation that consolidated and replaced several separate Nigerian tax laws — including the Companies Income Tax Act (CITA), Personal Income Tax Act (PITA), Value Added Tax Act (VATA), Capital Gains Tax Act (CGTA), and Stamp Duties Act — into a single unified statute. It was signed into law in June 2025 and takes effect from January 1, 2026.
When does the Nigeria Tax Act 2025 take effect?
The Nigeria Tax Act, 2025 takes effect from January 1, 2026. Businesses and individuals are expected to align their tax compliance — including PAYE computation, VAT filings, and CIT assessments — with the new Act from that date. Transitional provisions apply for certain categories of taxpayers in the first year of implementation.
What are the major changes to PAYE under the Nigeria Tax Act 2025?
The NTA 2025 replaces the former CRA-based calculation with the eligible deductions in section 30 and progressive annual bands of 0%, 15%, 18%, 21%, 23% and 25%. The first ₦800,000 of chargeable income is taxed at 0%, and section 58 excludes an individual earning the statutory Minimum Wage from the individual income-tax rates.
How did the Nigeria Tax Act 2025 change VAT?
The NTA 2025 maintains the 7.5% VAT standard rate but significantly expanded the list of VAT-exempt and zero-rated items in Sections 186 and 187. Key additions to the exempt list include basic food items, electricity for residential and small business use, and medical services. The Act also strengthened rules for non-resident digital service providers to register and remit VAT on supplies to Nigerian consumers.
What changed for Company Income Tax under the Nigeria Tax Act 2025?
The NTA 2025 defines a small company as one with annual gross turnover of no more than ₦100 million and total fixed assets of no more than ₦250 million; it pays 0% CIT. Any other company pays 30% CIT. A 4% Development Levy applies to assessable profits of companies other than small and non-resident companies, while qualifying large entities may be subject to the 15% minimum effective tax rules in section 57.
Does the Nigeria Tax Act 2025 affect Capital Gains Tax?
Yes. The NTA 2025 consolidated Capital Gains Tax (CGT) provisions into a single framework. The standard CGT rate remains 10% on chargeable gains, but the Act clarified exemptions, including gains from the disposal of the principal private residence, shares listed on the Nigerian Exchange Group (NGX), and gains rolled over into replacement assets within 12 months.
Calculate Your New Tax Obligations
Use our updated tax calculators to understand how the new Nigeria Tax Act affects your personal or business tax obligations under the reformed system.