New Nigeria Tax Law 2026: What Every Salary Earner Must Know Before January
Nigeria’s new Tax Act 2025 will take effect on January 1, 2026, introducing major changes for salary earners, freelancers, and mixed-income workers. The reform expands the tax base, clarifies taxable income, and sets new rules for deductions. Workers earning the national minimum wage (₦800,000 yearly or less) and military personnel are exempt. Taxable income now includes salaries, bonuses, allowances, and certain benefits-in-kind such as housing and cars.
The Act provides clearer deductions for both employees and freelancers, including pension, NHF, insurance, and business expenses for self-employed individuals. Taxes will be applied progressively across income bands, and individuals with both salary and business income must consolidate all earnings before taxation. Experts say the reform aims to simplify compliance, encourage proper record-keeping, and ensure fairness across income levels.
With the new rules, salary earners must verify payroll deductions, while freelancers should maintain proper financial records to avoid penalties. The government has also provided digital platforms to make tax payment easier nationwide.
Nigeria’s new Tax Act 2025 will take effect on January 1, 2026, introducing major changes for salary earners, freelancers, and mixed-income workers. The reform expands the tax base, clarifies taxable income, and sets new rules for deductions. Workers earning the national minimum wage (₦800,000 yearly or less) and military personnel are exempt. Taxable income now includes salaries, bonuses, allowances, and certain benefits-in-kind such as housing and cars.
The Act provides clearer deductions for both employees and freelancers, including pension, NHF, insurance, and business expenses for self-employed individuals. Taxes will be applied progressively across income bands, and individuals with both salary and business income must consolidate all earnings before taxation. Experts say the reform aims to simplify compliance, encourage proper record-keeping, and ensure fairness across income levels.
With the new rules, salary earners must verify payroll deductions, while freelancers should maintain proper financial records to avoid penalties. The government has also provided digital platforms to make tax payment easier nationwide.
New Nigeria Tax Law 2026: What Every Salary Earner Must Know Before January
Nigeria’s new Tax Act 2025 will take effect on January 1, 2026, introducing major changes for salary earners, freelancers, and mixed-income workers. The reform expands the tax base, clarifies taxable income, and sets new rules for deductions. Workers earning the national minimum wage (₦800,000 yearly or less) and military personnel are exempt. Taxable income now includes salaries, bonuses, allowances, and certain benefits-in-kind such as housing and cars.
The Act provides clearer deductions for both employees and freelancers, including pension, NHF, insurance, and business expenses for self-employed individuals. Taxes will be applied progressively across income bands, and individuals with both salary and business income must consolidate all earnings before taxation. Experts say the reform aims to simplify compliance, encourage proper record-keeping, and ensure fairness across income levels.
With the new rules, salary earners must verify payroll deductions, while freelancers should maintain proper financial records to avoid penalties. The government has also provided digital platforms to make tax payment easier nationwide.
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