CITN Lists Exemptions from Nigeria's 2026 Tax Regime

The Chartered Institute of Taxation of Nigeria (CITN) has outlined the categories of individuals and businesses exempt from Nigeria's presumptive tax regime, which will take effect on January 1, 2026. This guidance was published on X and is part of Nigeria's 2025 tax reforms.

The presumptive tax regime is established under Section 29 of the Nigeria Tax Act, 2025, targeting informal operators with difficult-to-determine incomes due to poor record-keeping. Exempt groups include registered co-operative societies not deriving profits from trade, individuals engaged in educational, religious, or charitable activities, registered trade unions, and government entities unless profits arise from trading activities.

Nano businesses, defined as sole proprietorships or household-run enterprises with an annual turnover of no more than N12 million, are also exempt from income tax. CITN encourages eligible individuals and businesses to apply for a Tax Exemption Sticker or Certificate, which must be renewed annually.

The institute aims to reduce confusion and promote voluntary compliance as tax reforms progress.