The Presidential Fiscal Coverage and Tax Reforms Committee has introduced that Nigerians will profit from 50 tax exemptions and aid measures when the brand new tax legal guidelines take impact on January 1, 2026.
The announcement was made by the Chairman of the Committee, Taiwo Oyedele, in a launch posted on his verified X account, the place he said that the brand new tax legal guidelines will “present many reliefs and exemptions for low-income earners, common taxpayers, and small companies.”
In keeping with Oyedele, people incomes the nationwide minimal wage or much less will likely be exempt from private revenue tax, whereas annual gross revenue as much as ₦1.2 million equal to about ₦800,000 taxable revenue, will even be exempt.
These incomes as much as ₦20 million yearly will get pleasure from decreased PAYE tax, and presents will likely be exempt from taxation. People will even profit from allowable deductions resembling pension contributions, Nationwide Well being Insurance coverage Scheme contributions, Nationwide Housing Fund contributions, curiosity on loans for private residential housing, life insurance coverage or annuity premiums, and hire aid of as much as 20% of annual hire, capped at ₦500,000.
Oyedele additional defined that pensions, gratuities, and different retirement advantages granted according to the Pension Reform Act will stay tax-exempt, together with compensation for lack of employment as much as ₦50 million.
Capital positive aspects tax exemptions will cowl the sale of owner-occupied homes, private results price as much as ₦5 million, the sale of as much as two non-public autos per yr, and positive aspects on shares under ₦150 million yearly or as much as ₦10 million. Exemptions additionally apply to pension funds, charities, and non secular establishments working non-commercially.
Companies will profit from a number of exemptions, with small corporations — outlined as these with turnover no more than ₦100 million and whole mounted property not exceeding ₦250 million, paying 0% firm revenue tax.
Eligible startups are exempt, whereas employers who improve salaries for low-income employees or rent and retain new workers for a minimum of three years will get pleasure from 50% deductions.
Agricultural companies will obtain a five-year tax vacation, and positive aspects from investments in labeled startups by enterprise capitalists, non-public fairness funds, accelerators, or incubators will even be exempt.
Additional reliefs embody exemption from improvement levy, withholding tax exemptions for small corporations, producers, and agric companies, and VAT exemptions or suspension on primary meals gadgets, hire, training companies and supplies, pharmaceutical merchandise, diesel, petrol, photo voltaic tools, child merchandise, sanitary towels, incapacity aids, and agricultural inputs.
Small corporations with turnover of ₦100 million or under won’t be required to cost VAT. Stamp duties won’t apply to digital transfers under ₦10,000, wage funds, intra-bank transfers, transfers of presidency securities or shares, and all paperwork regarding switch of stocks and shares.
In keeping with Oyedele, the exemptions are aimed toward lowering the tax burden on Nigerians and stimulating {economic} actions as the federal government prepares to implement the brand new tax legal guidelines in 2026.