The **Nigeria Tax Administration Act, 2025** aims to provide a uniform procedure for consistent and efficient tax law administration to facilitate taxpayer compliance and optimise tax revenue. It applies to any person required to comply with tax laws, either personally or on behalf of another.
**Jurisdiction and Registration:**
* The **Nigeria Revenue Service (“the Service”)** is responsible for administering taxes on companies, certain military/police/foreign service personnel, non-resident persons deriving income from Nigeria, development levy, and specified taxes like VAT, and petroleum operations tax. It also has power over income tax, stamp duties, and tax incentives.
* The **relevant tax authority in a State or FCT** administers taxes for resident individuals, regarding imposition and ascertainment of income, profits, and chargeable gains, and tax rates.
* Every taxable person, including Federal, State, and Local Government ministries, departments, or agencies, must register and obtain a **Taxpayer Identification (Tax ID)**. Non-resident persons supplying taxable goods/services or deriving income from Nigeria must also register for a Tax ID.
**Returns, Assessment, and Payment:**
* Companies must file self-assessment returns at least once a year, not more than six months after the end of the accounting year (or within 18 months of incorporation or 6 months after the first accounting period for new companies).
* Individuals must file an annual return of income. Employers must file returns for emoluments paid to employees by January 31st of each year.
* Companies engaged in liquefied natural gas and upstream petroleum operations must submit estimated returns.
* VAT returns are due by the 21st day of the following month, except for small businesses.
* Taxable persons must submit a self-assessment tax return. Assessments can be self-assessments, administrative assessments by the tax authority, or additional assessments within six years (or anytime in case of deliberate misstatement).
* Tax is assessed in the currency of the transaction, and non-Naira tax is paid in that currency.
* Tax due is generally payable on or before the due date of filing, in one lump sum or instalments.
**Enforcement:**
* The tax authority can issue a notice to call for returns, books, documents, and information.
* An authorised officer has free access to lands, buildings, books, and documents for inspection, and can remove documents to make copies.
* Penalties for non-payment include a 10% addition and interest.
* Unpaid tax is a debt due to the relevant tax authority, which may enforce payment through distrain (seizure and sale of assets).