This document, the **Nigeria Tax Administration Bill, 2025 (HB. 1756)**, provides for the assessment, collection, and accounting for revenue accruing to the Federation, Federal, States, and Local Governments, and prescribes the powers and functions of tax authorities.
**Key Aspects of the Bill:**
* **Objective and Application:** The Bill aims to provide uniform procedures for consistent and efficient tax law administration to facilitate compliance and optimise revenue. It applies to any person required to comply with tax laws.
* **Tax Authorities and Jurisdiction (Section 3):**
* **Nigeria Revenue Service (The Service):** Has exclusive responsibility to administer taxes on companies; on persons employed in the Nigerian Army, Navy, Air Force, and Police Force (other than in a civilian capacity); on officers of the Nigerian Foreign Service; on non-resident persons deriving profit or income from Nigeria; and specific taxes like Value Added Tax (VAT) and income from petroleum operations. It also has the power to administer income tax, stamp duties, and tax incentives.
* **Relevant Tax Authority in a State/FCT:** Responsible for the administration of taxes for resident individuals, subject to certain exceptions.
* Tax authorities may authorise another to administer taxes on their behalf, with government approval.
* **Taxpayer Identification:** A taxable person must register and obtain a Taxpayer Identification (“Tax ID”). Non-resident persons supplying taxable goods/services or deriving income from Nigeria must also register and obtain a Tax ID.
* **Tax Returns:** The Bill specifies requirements and deadlines for various returns, including:
* Income Tax Returns for Companies (annual self-assessment).
* Estimated/Actual Income Tax Returns for companies engaged in liquefied natural gas or upstream petroleum operations.
* Income Tax Returns for Individuals (annual, on the prescribed form).
* Pay As You Earn (employer files return by January 31st of each year).
* Monthly Returns of Petroleum and Mineral Royalty.
* Monthly Returns for VAT (due on or before the 21st day of the following month).
* **Assessment:** The Bill covers self-assessment of tax payable, administrative assessments, and additional assessments. Tax must be assessed and paid in the currency of the transaction.
* **Tax Avoidance/Recovery:** Includes provisions on artificial transactions, prohibited tax avoidance arrangements, and powers for recovery of tax, including distrain.
* **Technology/Advance Rulings:** Allows relevant tax authorities to deploy technology to automate processes, and outlines the issuance and effect of advance rulings for clarity on tax law interpretation and application.
* **Distribution of VAT Revenue (Section 75):** The net VAT revenue is distributed as 10% to the Federal Government, 55% to State Governments/FCT, and 35% to Local Governments.