{"id":1424,"date":"2025-11-12T20:19:19","date_gmt":"2025-11-12T20:19:19","guid":{"rendered":"https:\/\/itax.ng\/news\/?p=1424"},"modified":"2025-12-09T10:26:06","modified_gmt":"2025-12-09T10:26:06","slug":"fifty-50-tax-exemptions","status":"publish","type":"post","link":"https:\/\/itax.ng\/news\/fifty-50-tax-exemptions\/","title":{"rendered":"Fifty (50) Tax Exemptions And Reliefs To Benefit Nigerians Under The New Tax Reform Laws From January 2026"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">A New Dawn for Nigerian Taxpayers<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">From 1 January 2026, the Federal Government\u2019s new Tax Reform Laws will introduce an unprecedented wave of tax exemptions and reliefs designed to ease the financial burden on low-income earners, average taxpayers, and small businesses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The reform marks a shift towards a fairer and more inclusive tax system encouraging compliance while protecting the most vulnerable Nigerians.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below is a breakdown of key relief measures and exemptions across different tax categories.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">PERSONAL INCOME TAX (PAYE)<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Individuals earning the national minimum wage or less will be fully exempt.<\/li>\n\n\n\n<li>Annual gross income up to \u20a61.2 million (\u2248 \u20a6800,000 taxable income) \u2014 exempt.<\/li>\n\n\n\n<li>Reduced PAYE rates for individuals earning up to \u20a620 million annually.<\/li>\n\n\n\n<li>Gifts received by individuals exempt from tax.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Allowable Deductions and Reliefs<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Taxpayers can continue to enjoy deductions for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pension contributions (PFA)<\/li>\n\n\n\n<li>National Health Insurance Scheme (NHIS)<\/li>\n\n\n\n<li>National Housing Fund (NHF) contributions<\/li>\n\n\n\n<li>Interest on owner-occupied housing loans<\/li>\n\n\n\n<li>Life insurance or annuity premiums<\/li>\n\n\n\n<li>Rent relief: 20% of annual rent (up to \u20a6500,000)<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Pensions and Gratuities<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pension funds and assets under the Pension Reform Act (PRA) remain tax-exempt.<\/li>\n\n\n\n<li>Pension, gratuity, or other retirement benefits granted in line with PRA exempt.<\/li>\n\n\n\n<li>Compensation for loss of employment up to \u20a650 million exempt.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>CAPITAL GAINS TAX (CGT)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To encourage asset ownership and investment, the following are exempt from CGT:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sale of an owner-occupied residential property<\/li>\n\n\n\n<li>Personal effects or chattels worth up to \u20a65 million<\/li>\n\n\n\n<li>Sale of up to two private vehicles per year<\/li>\n\n\n\n<li>Gains on shares below \u20a6150 million annually or gains up to \u20a610 million<\/li>\n\n\n\n<li>Reinvested gains above the exemption threshold<\/li>\n\n\n\n<li>Pension funds, charitable and religious institutions (non-commercial activities)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>COMPANIES INCOME TAX (CIT)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses are set to gain major reliefs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Small companies (turnover \u2264 \u20a6100 million; fixed assets \u2264 \u20a6250 million) \u2014 0% tax rate<\/li>\n\n\n\n<li>Eligible startups formally labeled under the reform \u2014 CIT-exempt<\/li>\n\n\n\n<li>Compensation relief: 50% additional deduction for wage increases, bonuses, or transport subsidies granted to low-income staff<\/li>\n\n\n\n<li>Employment relief: 50% deduction on salaries of new employees retained for at least three years<\/li>\n\n\n\n<li>Agriculture sector: Five-year tax holiday for crop, livestock, and dairy production<\/li>\n\n\n\n<li>Startup investment relief: Gains from investments made by venture capitalists, private equity funds, accelerators, or incubators, exempt<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>DEVELOPMENT LEVY<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Small companies will no longer pay the 4% development levy.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>WITHHOLDING TAX (WHT)<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Small businesses, manufacturers, and agric enterprises are exempt from WHT on their income.<\/li>\n\n\n\n<li>Payments to suppliers by small companies are also exempt from deduction.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>VALUE ADDED TAX (VAT)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In a bid to support essential consumption and productive sectors:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Basic food items \u2014 <strong>0% VAT<\/strong><\/li>\n\n\n\n<li>Rent \u2014 <strong>exempt<\/strong><\/li>\n\n\n\n<li>Education and medical services\/materials \u2014 <strong>0% VAT<\/strong><\/li>\n\n\n\n<li>Pharmaceutical products \u2014 <strong>0% VAT<\/strong><\/li>\n\n\n\n<li>Small companies (\u2264 \u20a6100 million turnover) \u2014 <strong>exempt from charging VAT<\/strong><\/li>\n\n\n\n<li>Diesel, petrol, and solar energy equipment \u2014 <strong>VAT suspended\/exempt<\/strong><\/li>\n\n\n\n<li>Refundable VAT on assets and inputs used to produce VAT-exempt or 0% goods\/services<\/li>\n\n\n\n<li>Agricultural inputs \u2014 fertilizers, seeds, seedlings, feeds, and live animals \u2014 <strong>exempt<\/strong><\/li>\n\n\n\n<li>Purchase, lease, or hire of agricultural machinery \u2014 <strong>exempt<\/strong><\/li>\n\n\n\n<li>Disability aids (wheelchairs, hearing aids, braille materials) \u2014 <strong>exempt<\/strong><\/li>\n\n\n\n<li>Shared passenger transport (non-charter) \u2014 <strong>exempt<\/strong><\/li>\n\n\n\n<li>Electric vehicles and parts \u2014 <strong>exempt<\/strong><\/li>\n\n\n\n<li>Humanitarian supplies, baby products, and sanitary materials \u2014 <strong>exempt<\/strong><\/li>\n\n\n\n<li>Land and building transactions \u2014 <strong>exempt<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>STAMP DUTIES<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The following transactions will no longer attract stamp duty:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Electronic money transfers below \u20a610,000<\/li>\n\n\n\n<li>Salary payments<\/li>\n\n\n\n<li>Intra-bank transfers<\/li>\n\n\n\n<li>Transfer of government securities and shares<\/li>\n\n\n\n<li>All documents for transfer of stocks and shares<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A New Dawn for Nigerian Taxpayers From 1 January 2026, the Federal Government\u2019s new Tax Reform Laws will introduce an unprecedented wave of tax exemptions and reliefs designed to ease the financial burden on low-income earners, average taxpayers, and small businesses. The reform marks a shift towards a fairer and more inclusive tax system encouraging [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,58],"tags":[],"class_list":["post-1424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights-analysis","category-tax-updates"],"_links":{"self":[{"href":"https:\/\/itax.ng\/news\/wp-json\/wp\/v2\/posts\/1424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itax.ng\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itax.ng\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itax.ng\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itax.ng\/news\/wp-json\/wp\/v2\/comments?post=1424"}],"version-history":[{"count":1,"href":"https:\/\/itax.ng\/news\/wp-json\/wp\/v2\/posts\/1424\/revisions"}],"predecessor-version":[{"id":1425,"href":"https:\/\/itax.ng\/news\/wp-json\/wp\/v2\/posts\/1424\/revisions\/1425"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/itax.ng\/news\/wp-json\/wp\/v2\/media\/1426"}],"wp:attachment":[{"href":"https:\/\/itax.ng\/news\/wp-json\/wp\/v2\/media?parent=1424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itax.ng\/news\/wp-json\/wp\/v2\/categories?post=1424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itax.ng\/news\/wp-json\/wp\/v2\/tags?post=1424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}