Nigeria Introduces New Tax Regime for Workers and SMEs

The new tax regime in Nigeria, designed to ease the financial burden on low-income earners and small businesses, was discussed by Joseph Tegbe, the Chairman of the National Tax Policy Implementation Committee (NTPIC), during a session in Abuja. This comprehensive overhaul of the nation's tax architecture aims to simplify the system and ensure fairness while stimulating sustainable economic growth.

The reforms are anchored by four landmark legislations: the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service Establishment Act 2025, and the Joint Revenue Board Nigeria Establishment Act 2025. Key features include income tax exemptions for individuals earning less than 800,000 annually and small businesses with annual revenues below 100 million and assets below 250 million.

Additionally, nano enterprises earning less than 12 million annually will be granted total income tax exemptions. Tegbe emphasized the importance of maintaining proper records and filing returns regularly to benefit from these exemptions, which are designed to create a more transparent tax system.