The details of New Nigeria Tax Bill:

VAT rate proposed for phased-review as follows, in:

- 2024, remains at 7.5%

- 2025, moves to 10% as CIT rate reduces to 27.5%

- 2026, moves to 12.5% as CIT reduces to

25%, and

- 2030, moves to 15% (in line with ECOWAS rate).

Companies Income Tax:

1. Small companies: 0%. 

2. Large companies:

27.5% in assessment year 2025; and

25% in assessment year 2026.

- Companies are reclassified into two - small and large. Threshold for small taxpayers increased to N50m

Consolidating all the earmarked taxes into a development levy at 4% which will be progressively reduced to 2% over 5 years.

• Minimum tax is repealed

• The global minimum tax for only multinationals and very large companies introduced in line with the OECD Pillar 2.

Personal Income Tax:

- Individuals are taxed on a sliding scale of 0% to 25%.

- Individuals that earn N800,000 p.a. or less to enjoy 0% tax rate

- Employment income accruing in Nigeria to a non-resident individual will not be taxed in Nigeria except where the employment is exercised in Nigeria.

VAT E-Invoicing:

Legal framework for fiscalisation and e- invoicing system.

VAT Refund:

- VAT refund is to be made within 30 days of application without the need for a prior audit.

- Government is to share net VAT revenue after setting aside the funds required for VAT refund-claims.

- FIRS to submit monthly reconciliation schedule of refund claims, payments and funding.

- Penalty, including blacklisting or prosecution for false or fraudulent VAT refund claim.

- Businesses with turnover below N50

million relived of VAT obligations.