{"id":944,"date":"2026-01-09T14:37:57","date_gmt":"2026-01-09T14:37:57","guid":{"rendered":"https:\/\/synergyintegratedhub.com.ng\/?p=944"},"modified":"2026-01-09T14:37:57","modified_gmt":"2026-01-09T14:37:57","slug":"new-tax-regime-in-nigeria","status":"publish","type":"post","link":"https:\/\/synergyintegratedhub.com.ng\/index.php\/2026\/01\/09\/new-tax-regime-in-nigeria\/","title":{"rendered":"New Tax Regime in Nigeria"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">COMMONLY ASKED QUESTIONS &amp; ANSWERS ON THE NEW NIGERIA TAX LAW (Adapted from the Nigeria Tax Act, 2025 with SPECIFIC FOCUS ON INDIVIDUALS AND SMALL BUSINESSES)<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a form of introduction, It is important that readers understand that a tax is a mandatory financial charge or levy imposed on an individual or legal entity by a governmental organization to support government spending and public expenditures collectively or to regulate and reduce negative externalities. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">T<em>axation<\/em> is central to building strong, prosperous and inclusive societies by helping to raise the revenues needed to deliver much needed public goods and services in the society.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are various kinds of tax:  <a href=\"https:\/\/www.nrs.gov.ng\/tax-information\/individual-income-tax\">Individual Income Tax<\/a>, <a href=\"https:\/\/www.nrs.gov.ng\/tax-information\/corporate-income-tax\">Company Income Tax<\/a>, <a href=\"https:\/\/www.nrs.gov.ng\/tax-information\/petroleum-taxes\">Petroleum Taxes<\/a>,v<a href=\"https:\/\/www.nrs.gov.ng\/tax-information\/value-added-tax\">alue Added Tax<\/a>, <a href=\"https:\/\/www.nrs.gov.ng\/tax-information\/withholding-tax\">Withholding Tax<\/a>, <a href=\"https:\/\/www.nrs.gov.ng\/tax-information\/stamp-duties\">Stamp Duties<\/a>, <a href=\"https:\/\/www.nrs.gov.ng\/tax-information\/surcharge-fossil-fuels-others\">Fossil Fuel Surcharge<\/a>, <a href=\"https:\/\/www.nrs.gov.ng\/tax-information\/incentives-and-exemptions\">Incentives &amp; Exemptions<\/a>, <a href=\"https:\/\/www.nrs.gov.ng\/tax-information\/development-levy\">Development Levy<\/a> To know more about these kindly visit <a href=\"https:\/\/www.nrs.gov.ng\/\">https:\/\/www.nrs.gov.ng\/<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, this article will present to you common questions people have about tax and appropriate responses for your education.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q1: When will the new Nigeria Tax Act take effect?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A1: The new Nigeria Tax Act takes effect from 1st January 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Q2:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Which specific individuals does the Nigerian Tax Law apply to?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A2: It applies to all individuals who earn income in Nigeria (workers, content creators, remote workers, influencers, traders, etc.) and to Nigerians earning income abroad if they are tax residents in Nigeria.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q3:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Will transfers and deposits into my bank account be taxed?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A3: NO. Moving money around (via POS, transfers, deposits, or withdrawals) is not a taxable event. What is taxed is income earned.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q4:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Will the money I KEEP in my bank account be taxed from 2026?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A4: NO. Just having money in your account is not taxable. Only the income you earn (salary, business profits, or interest) can be taxed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q5:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I\u2019m a student with no job. Will I pay tax in 2026?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A5: NO. If you have no taxable income, you won&#8217;t pay tax.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q6:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Will tax authorities now monitor bank accounts of businesses more closely?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A6: YES. It will be easier for authorities to track compliance. Your bank balances will not be taxed; profits and income are.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q7:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Will I pay tax on the loan I borrow from Fairmoney or any lender?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A7: NO. Loans are not taxable since they are not income. Interest income earned by Fairmoney will be taxed in their hands.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q8:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I run a one-man business. Do I pay personal income tax or company income tax?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A8: If registered as an enterprise (business name), you pay Personal Income Tax. If registered as a limited liability company, you pay Company Income Tax.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q9:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If I sell shares and make a profit, will I pay tax in 2026?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A9: NO. If shares sold are not more than \u20a6150 million and gain not above \u20a610 million. Above this, the gain is taxable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q10:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I am a pensioner. Will my pension income be taxed in 2026?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A10: NO. Approved pension and retirement benefits are tax-exempt.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"723\" src=\"https:\/\/synergyintegratedhub.com.ng\/wp-content\/uploads\/2026\/01\/Tax-management-and-planning-1024x723.jpg\" alt=\"\" class=\"wp-image-945\" srcset=\"https:\/\/synergyintegratedhub.com.ng\/wp-content\/uploads\/2026\/01\/Tax-management-and-planning-1024x723.jpg 1024w, https:\/\/synergyintegratedhub.com.ng\/wp-content\/uploads\/2026\/01\/Tax-management-and-planning-300x212.jpg 300w, https:\/\/synergyintegratedhub.com.ng\/wp-content\/uploads\/2026\/01\/Tax-management-and-planning-768x542.jpg 768w, https:\/\/synergyintegratedhub.com.ng\/wp-content\/uploads\/2026\/01\/Tax-management-and-planning-700x494.jpg 700w, https:\/\/synergyintegratedhub.com.ng\/wp-content\/uploads\/2026\/01\/Tax-management-and-planning.jpg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q11:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Are military salaries taxable?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A11: NO. Salaries of military officers are tax-exempt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q12:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Do creatives (authors, musicians, sportsmen) still enjoy tax exemptions on foreign income?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A12: NO. They must pay Nigerian tax on income earned both within Nigeria and abroad.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q13:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Are crypto gains taxable?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A13: YES. Profits from crypto, NFTs, and other digital assets are taxable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q14:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Who is exempt from personal income tax?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A14: Individuals earning the national minimum wage or less, or below \u20a6800,000 annually.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q15:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What are the new progressive tax bands?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A15:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First \u20a6800,000 @ 0%<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next \u20a62.2m @ 15%<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next \u20a69m @ 18%<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next \u20a613m @ 21%<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next \u20a625m @ 23%<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Above \u20a650m @ 25%<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q16:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If I get a big severance package when leaving my job, will I pay tax on it?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A16: No tax if \u20a650 million or less. Above that, taxed using the progressive tax bands.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"> \ud83d\udfe2 Q17:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If I earn dividends or rent from abroad, will Nigeria tax it?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A17: Dividends, interests, rent, and royalties earned from outside Nigeria are exempt if brought through approved channels (banks).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q18:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If a soldier or armed forces member gets injured and receives a disability pension, will it be taxed?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A18: NO. Disability pensions are completely tax-exempt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q19:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">My uncle wants to start an agricultural company next year. Will it be taxed in Nigeria?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A19: NO. Agricultural companies (crops, livestock, forestry, dairy, cocoa processing) enjoy a 5-year tax holiday from start.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q20:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Is income from Federal or State Government bonds taxable?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A20: NO. All government bonds are tax-exempt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q21:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What does rent relief entail under the new tax law?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A21: From 2026, individuals can claim rent relief of 20% of annual rent paid, capped at \u20a6500,000. Must declare actual rent to the tax authority.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q22:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I earn \u20a66m yearly. Will I be better off under the new tax law?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A22:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Old law:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CRA = 20% of \u20a66m (\u20a61.2m) + \u20a6200k = \u20a61.4m<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Taxable income = \u20a66m \u2212 \u20a61.4m = \u20a64.6m<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Total tax = \u20a6896,000<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">New law:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rent relief = \u20a6500k<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Taxable income = \u20a66m \u2212 \u20a6500k = \u20a65.5m<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Applying new bands:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First \u20a6800k @0% = 0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next \u20a62.2m @15% = \u20a6330k<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Remaining \u20a62.5m @18% = \u20a6450k<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Total tax = \u20a6780k, saving \u20a6116k<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q23:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If my company&#8217;s turnover is below \u20a650 million, will I pay tax?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A23: NO. Small companies with turnover &lt; \u20a650m are tax-exempt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q24:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a remote worker in Nigeria for an international organisation, will I pay tax?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A24: YES. You pay tax in Nigeria unless exempted by treaty\/diplomatic arrangement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udfe2 Q25:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Will a foreigner earning a salary in Nigeria be taxed?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A25: NO. If employer is a start-up or operates in tech\/creative arts, and income is taxed in country of residence.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>COMMONLY ASKED QUESTIONS &amp; ANSWERS ON THE NEW NIGERIA TAX LAW (Adapted from the Nigeria Tax&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"give_campaign_id":0,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-944","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/synergyintegratedhub.com.ng\/index.php\/wp-json\/wp\/v2\/posts\/944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/synergyintegratedhub.com.ng\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/synergyintegratedhub.com.ng\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/synergyintegratedhub.com.ng\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/synergyintegratedhub.com.ng\/index.php\/wp-json\/wp\/v2\/comments?post=944"}],"version-history":[{"count":1,"href":"https:\/\/synergyintegratedhub.com.ng\/index.php\/wp-json\/wp\/v2\/posts\/944\/revisions"}],"predecessor-version":[{"id":946,"href":"https:\/\/synergyintegratedhub.com.ng\/index.php\/wp-json\/wp\/v2\/posts\/944\/revisions\/946"}],"wp:attachment":[{"href":"https:\/\/synergyintegratedhub.com.ng\/index.php\/wp-json\/wp\/v2\/media?parent=944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/synergyintegratedhub.com.ng\/index.php\/wp-json\/wp\/v2\/categories?post=944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/synergyintegratedhub.com.ng\/index.php\/wp-json\/wp\/v2\/tags?post=944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}