4% Development Levy on assessable profits replacing multiple existing levies such as the Tertiary Education Tax and Police Trust Fund levy.
Tax exemption for small companies with gross turnover ≤ ₦50 million and fixed assets ≤ ₦250 million from Companies Income Tax, Capital Gains Tax, and the Development Levy.
Alignment of Capital Gains Tax rate for companies to 30%, matching the corporate tax rate.
More progressive personal income tax bands with incomes up to ₦800,000 exempted and a top marginal rate increased to 25% for high earners.
Retention of VAT at 7.5% but expanded zero-rated goods list including food, books, and medical items.
Mandatory adoption of electronic invoicing and real-time VAT systems for better compliance and tracking.
Personal Income Tax now applies to worldwide income of Nigerian residents, including those with economic or family ties during the year.
These tax reforms aim to simplify the tax system, widen the tax base, reduce tax avoidance, and provide relief for low-income earners, while boosting government revenue and supporting economic development in Nigeria.
