This is a summary of the Nigeria Tax Act, 2025:
The Nigeria Tax Act, 2025, is an Act that repeals certain tax Acts and consolidates the legal frameworks relating to taxation to provide for the taxation of income, transactions, and instruments. The objective of the Act is to provide a unified fiscal legislation governing taxation in Nigeria.
**Key Provisions and Chapters:**
* **Taxation of Income of Persons (Chapter Two):** Imposes income tax on the profits/gains of any company or enterprise, the income of any individual or family, and income accruing to a trustee or an estate. It covers:
* Taxation of Resident Persons (Part II).
* Taxation of Non-Resident Persons (Part III), including rules for non-resident persons engaged in shipping or air transport.
* Ascertainment of Profits and Income (Part IV and V), addressing deductions allowed and not allowed.
* Ascertainment of Total Profits of Companies and Total Income of an Individual (Part VI and VII).
* Ascertainment of Chargeable Gains (Part VIII).
* Rates of Tax (Part IX): Specifies a 0% rate for small companies and 30% for others. It also introduces an Effective Tax Rate provision of a minimum of 15% for certain companies.
* Development Levy (Part X): Imposes a 4% development levy on the assessable profits of all companies chargeable under Chapters Two and Three, other than small and non-resident companies, with specified distribution to agencies and funds.
* Specialised Trade or Business (Part XI): Contains provisions for Export Processing and Export Free Zone entities, Insurance, Lottery and Gaming, Collective Investment Schemes, and Mining Operations.
* **Taxation of Income from Petroleum Operations (Chapter Three):** Includes provisions on Hydrocarbon Tax, Petroleum Profits Tax, and Deep Offshore and Inland Basin Production Sharing Contracts.
* **Relief for Double Taxation (Chapter Four):** Addresses unilateral relief and double taxation agreements.
* **Taxation of Dutiable Instruments (Chapter Five):** Covers the imposition of stamp duties on chargeable instruments such as Bills of Exchange, Promissory Notes, and Conveyance on sale.
* **Value Added Tax (Chapter Six):** Deals with the imposition, charge, rate, and remittance of Value Added Tax (VAT).
* **Surcharge (Chapter Seven):** Imposes a surcharge on chargeable transactions.
* **Tax Incentives (Chapter Eight):** Provides for Income Tax Exemptions and Economic Development Tax Incentives.