THE NIGERIA TAX ACT, 2025

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NIGERIA TAX ACT, 2025

LAWS OF THE FEDERATION OF NIGERIA

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EXPLANATORY MEMORANDUM

This Act repeals certain tax Acts and enacts the Nigeria Tax Act, 2025 to provide for taxation of income, transactions and instruments.

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NIGERIA TAX ACT, 2025

ARRANGEMENT OF SECTIONS

CHAPTER ONE — OBJECTIVE AND APPLICATION

1.     Objective

2.     Application

CHAPTER TWO — TAXATION OF INCOME OF PERSONS

PART 1 — IMPOSITION OF TAX ON INCOME, PROFITS OR GAINS

3.     Imposition of tax

4.     Income, profits or gains chargeable to tax

5.     Chargeability to tax

PART II — TAXATION OF RESIDENT PERSONS

6.     Nigerian company

7.     Nigerian dividends

8.     Profits of a company from certain dividends

9.     Substitution of dividend for total profit

10.    Certain undistributed profits may be treated as distributed

11.    Partnership of companies

12.    Resident individual

13.    Employment income

14.    Benefits-in-kind

15.    Partnership of individuals

16.    Settlements, trusts and estates

PART III — TAXATION OF NON-RESIDENT PERSONS

17.    Non-resident person

18.    Non-resident person engaged in shipping or air transport

19.    Nigerian dividends received by non-resident persons

PART IV — ASCERTAINMENT OF PROFITS AND INCOME

20.    Deductions allowed

21.    Deductions not allowed

PART V — ASCERTAINMENT OF ASSESSABLE PROFITS AND INCOME

22.    Basis for computing assessable profits for trade or business

23.    Change in accounting date

24.    Cessation of trade or business

25.    Continuity of trades

26.    Basis for computing assessable income

PART VI — ASCERTAINMENT OF TOTAL PROFITS OF COMPANIES

27.    Ascertainment of total profits of companies

PART VII — ASCERTAINMENT OF TOTAL INCOME OF AN INDIVIDUAL

28.    Total income of an individual

29.    Presumptive taxation

30.    Ascertainment of chargeable income of individuals

31.    Deductions to be claimed

32.    Proof of claims

PART VIII — ASCERTAINMENT OF CHARGEABLE GAINS

33.    Chargeable gains

34.    Chargeable assets

35.    Disposal of assets

36.    Disposal of assets, provisions as to considerations

37.    Compulsory acquisition of land

38.    Date of acquisition or disposal

39.    Computation of chargeable gains

40.    Expenses incurred for disposal of chargeable assets

41.    Part disposal

42.    Consideration due after time of disposal

43.    Assets lost or destroyed

44.    Bargains comprising two or more transactions

45.    Valuation at market value

46.    Location of assets

47.    Indirect transfer of ownership of companies or assets

48.    Life assurance policies

49.    Rights under policies of insurance, other than life assurance policies

50.    Personal injury

51.    Principal private residences

52.    Personal chattels

53.    Motor vehicles

54.    Gifts

55.    Assets held in trust for charities

PART IX — RATES OF TAX

56.    Rate of tax for companies

57.    Effective tax rate

58.    Rates of tax for individuals

PART X — DEVELOPMENT LEVY

59.    Development levy

PART XI — SPECIALISED TRADE OR BUSINESS

60.    Export processing and free trade zone entities

61.    Insurance trade or business

62.    Lottery and gaming trade or business

63.    Collective investment scheme

64.    Mining operations

CHAPTER THREE — TAXATION OF INCOME FROM PETROLEUM OPERATIONS

PART I — HYDROCARBON TAX, ASCERTAINMENT OF CHARGEABLE TAX, ASCERTAINMENT OF CHARGEABLE PROFITS AND CONSOLIDATION FOR TAX PURPOSES

65.    Application of this Part

66.    Charge of hydrocarbon tax

67.    Ascertainment of crude oil revenue, adjusted profit, assessable profits

68.    Allowable deductions

69.    Deductions not allowed

70.    Assessable profits and losses

71.    Chargeable profits and allowances

72.    Chargeable hydrocarbon tax

73.    Additional chargeable tax payable in certain circumstances

74.    Pre-production cost

75.    Trade or business sold or transferred

76.    Consolidation of costs and revenue

77.    Partnerships

78.    Income tax on petroleum operations

79.    Registration and use of separate company for each stream of petroleum operations

80.    Provisions relating to gas

81.    Allowances for the purposes of income tax on petroleum operations

82.    Expense deductibility

83.    Basis period for income tax on petroleum operations

84.    Additional income tax payable in certain circumstances

85.    Non-Associated gas greenfield developments in onshore and shallow water terrains

86.    Provision relating to decommissioning and abandonment of funds

87.    General application of this Part and other matters

88.    Fiscal stabilisation

89.    Petroleum royalty

PART II — PETROLEUM PROFITS TAX

IMPOSITION OF TAX AND ASCERTAINMENT OF CHARGEABLE PROFITS, ASCERTAINMENT OF ASSESSABLE TAX AND OF CHARGEABLE TAX

90.    Charge of petroleum profits tax

91.    Ascertainment of profits, adjusted profit, assessable profits and chargeable profits

92.    Deductions allowed

93.    Incentives for utilisation of associated gas

94.    Application of incentives to utilisation of non-associated gas

95.    Deductions not allowed

96.    Exclusion of certain profits

97.    Assessable profits and losses

98.    Chargeable profits and capital allowances

99.    Assessable petroleum profits tax

100. Additional chargeable tax payable in certain circumstances

101. Partnerships

PART III — DEEP OFFSHORE AND INLAND BASIN PRODUCTION SHARING CONTRACTS

102. Production sharing contracts

103. Duration of oil prospecting licence

104. Determination of petroleum profits tax

105. Determination of investment tax allowance

106. Royalty payable in respect of deep offshore production sharing contracts

107. Computation of petroleum profit tax

108. Allocation of royalty oil

109.  Allocation of cost oil

110. Allocation of tax oil

111. Allocation of profit oil

112. Payment royalty

113. Chargeable tax petroleum operations

114. Use of realisable price in determining royalty and petroleum profits tax in respect of crude oil

115. Submission of receipts

116. Adaptation of laws

117. Review of the production sharing contract

PART IV — MISCELLANEOUS PROVISIONS

118. Administration of royalties

119. Interpretation

CHAPTER FOUR — RELIEF FOR DOUBLE TAXATION

120. Unilateral relief of double taxation

121. Double taxation agreement

122. Method of calculating relief to be allowed for double taxation

123. Interpretation

CHAPTER FIVE — TAXATION OF DUTIABLE INSTRUMENTS

PART I — IMPOSITION OF STAMP DUTIES

124. Charge of duties

125. Manner of denoting duty

126. Obligation to stamp

127. Admissible evidence

PART II — CHARGEABLE INSTRUMENTS

128. Bill of exchange

129. Promissory Note

130. Sale or purchase of options

131. Conveyance on sale

132. Conveyance in consideration of a debt

133. Duty on transfer of mineral assets

134. Provisions as to exchange

135. Leases

136. Duty on share capital

137. Duty on loan capital

138. Marketable security

139. Appraisements

PART III — MISCELLANEOUS PROVISIONS

140. Duplicates and counterparts

141. Duty relating to one instrument covering multiple transactions

142. Duty relating to multiple instruments covering same transaction

143. Provisions on non-monetary consideration

CHAPTER SIX — VALUE ADDED TAX

PART I — IMPOSITION OF VALUE ADDED TAX

144. Imposition of value added tax

145. Charge of VAT

146. Taxable supplies

147. Time of supply

148. Rate of VAT

149. Value of taxable supplies

150. Value of imported taxable supply

151. Taxable supply of non-residents

PART II — REMITTANCES AND RECOVERY OF VAT

152. Payment of VAT by taxable person

153. VAT Invoice

154. Collection of VAT by taxable person

155. Collection of VAT by persons other than the supplier

156. Credit for input tax and remission of VAT

157. Business sold out

158. Fiscalisation of supplies for VAT

CHAPTER SEVEN — SURCHARGE

159. Imposition of surcharge

160. Chargeable transaction and base for surcharge

161. Administration of the surcharge

162. Exemption from surcharge

CHAPTER EIGHT — TAX INCENTIVES

PART I — INCOME TAX EXEMPTIONS

163. Income tax exemption

164. Deductible donations

165. Deduction for research and development

PART II — ECONOMIC DEVELOPMENT TAX INCENTIVES

166. Priority sectors

167. Eligibility for economic development incentive certificate

168. Application for economic development incentive certificate

169. Approval of application

170. Terms of economic development incentive certificate

171. Addition of product to the economic development incentive certificate

172. Application of economic development incentive certificate

173. Production day and qualifying capital expenditure

174. Cancellation of economic development incentive certificate

175. Information

176. Publication of economic development incentive certificate

177. Economic development tax credit

178. Economic development incentive period

179. Books and records for priority products

180. Returns of profits

181. Cancellation or discountenance of economic development tax credit

182. Provisions for plantation industry

183. Exclusion from other reliefs and transition arrangements

184. Interpretation

PART III — EXEMPTION FROM STAMP DUTIES

185. Exemption from stamp duties

PART IV — EXEMPTION FROM VAT

186. Exempt supplies

187. Taxable supplies chargeable at 0%

188. Exemption by order of the President

189. Interpretation

CHAPTER NINE — GENERAL PROVISIONS

190. Business restructuring

191. Artificial transactions

192. Transactions between related parties to be at arm’s length

193. Waivers or refund of liability or expenses

194. Supplemental

195. Power to make regulation

196. Repeals

197. Consequential amendments

198. Revocation and consequential amendment of subsidiary legislation

199. Savings provisions

200. Exercise of powers, duties and obligations

201. Conflict with other laws

202. General interpretation

203. Citation

Schedules

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NIGERIA TAX ACT, 2025

An Act to repeal the Capital Gains Tax Act, the Casino Act, the Companies Income Tax Act, the Deep Offshore and Inland Basin Production Sharing Contracts Act, the Industrial Development (Income Tax Relief) Act, Income Tax (Authorised Communications) Act, Personal Income Tax Act, Stamp Duties Act, Value Added Tax Act and the Venture Capital (Incentives) Act to amend the Nigeria Export Processing Zones Act, the Oil and Gas Free Trade Zone Act, the National Information Technology Development Agency Act, Petroleum Industry Act, Tertiary Education Trust Fund (Establishment, etc.) Act, the National Agency for Science and Engineering Infrastructure Act, the Customs, Excise Tariffs, etc. (Consolidation) Act, the National Lottery Act, the Nigerian Minerals and Mining Act, the Nigeria Start-up Act, the Export (Incentives and Miscellaneous Provisions) Act, the Cybercrime (Prohibition, Prevention, etc.) Act, to revoke the Value Added Tax Act (Modification) Order 2021, to amend the Companies Income Tax (Significant Economic Presence) Order, 2020 and the Petroleum (Drilling and Production) Regulations 1969, to consolidate the legal frameworks relating to taxation and enact the Nigeria Tax Act to provide for taxation of income, transactions and instruments; and for related matters.

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[Commencement]       [1ST JANUARY, 2016 ]

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ENACTED by the National Assembly of the Federal Republic of Nigeria —

CHAPTER ONE — OBJECTIVE AND APPLICATION

1.     Objective

The objective of this Act is to provide a unified fiscal legislation governing taxation in Nigeria.

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