27/06/2025
Some Major Changes in the New Tax Bills to Take Effect After President Bola Ahmed Tinubu Signs It into Law Today:
1. Tax Exemption for Low-Income Earners: Individuals earning ₦800,000 or less annually are now fully exempted from personal income tax.
2. Higher Tax Bracket for Big Businesses: A 25% income tax rate will now apply only to individuals earning above ₦50 million annually.
3. Tax Relief for Small Businesses: Owners of small businesses with an annual income below ₦50 million are completely exempt from paying income tax.
4. Company Income Tax Reduction: The company income tax rate for medium and large businesses will be reduced from 30% to 25%, effective from 2026.
5. VAT Exemptions on Essentials: Essential goods and services consumed by the poor—such as basic food items, medical services, pharmaceuticals, education fees, and electricity—will now be exempted from Value Added Tax (VAT).
6. Revenue Collection Reforms: The newly established Nigeria Revenue Service (NRS) will now handle revenue collection duties previously managed by agencies including the Nigeria Customs Service, NUPRC, NPA, and NIMASA.
7. No Increase in VAT or Corporate Tax: VAT remains at 7.5%, and the corporate income tax for larger firms stays at 30%. There is no increase.
8. Development Levy Introduced: A new Development Levy of between 2% and 4% will be introduced to fund national development bodies such as the Student Education Loan Fund, TETFund, NITDA, and NASENI.
9. FIRS Replaced: The Federal Inland Revenue Service (FIRS) will be scrapped and replaced with the Nigeria Revenue Service (NRS).
Sulson Tv
