17/12/2025
THE NEW TAX LAW
It is no longer news the a new tax law has been enacted which is set to take effect from 1st of January, 2026.
As career individuals (business owners, freelancers, creatives, remote workers, skilled practitioners), it is important to understand the dynamics of the new tax law to avoid being swindled by fraudulent people all in a bid to comply with the new law.
This is because this law is non-negotiable.
Below are some Vital Provisions of the New Tax Law;
1. The law applies to all income earners (traders, content creators, remote workers, etc), and even Nigerians earning income abroad if they are tax residents in Nigeria
2. Those in the military or security parastatals are exempted
3. Having money in your account, or making transfers and withdrawals from your account is non-taxable, only salary, profits, and income, are applicable.
4. Loan is non-taxable (apart from the statutory loans or government loans)
5. Individuals earning less than 800k per annum, or minimum wage are exempted
Above 800k has different threshold or percentage tax deductions ranging from 15% to 25%
6. Rent relief can also be claimed by individuals, but within the tune of N500,000
7. Student not earning income is exempted, whereas those having an income stream are not exempted.
8. Dividends, royalties, etc earned from outside Nigeria are tax exempted where it was brought into Nigeria through the right channel, eg banks.
9. If you're a business owner who registered your business as a business name under CAC, it is the Personal income tax that will be applicable, but if it was registered as a limited liability company, it is the Company income tax thatt will be applicable. And either of these two taxes have their advantages and disadvantages.
10. Selling shares less than 150m in value with less than 10m in gain is non -taxable. Any value and profit above this is taxable
I hope this helps!
.......TO BE CONTINUED
©️ Amarachi Obunanim