***FIRS now NRS, to collect revenues hitherto handled by Nigeria Customs Service, NUPRC, NPA, NIMASA
President Bola Ahmed Tinubu, on Thursday June 26, signed the tax reform bills into law, exempting workers earning below N800,000 annually from taxation.
DECENCY GLOBAL NEWS reports that the Implementation of the law, is expected to commence January 2026.
The Act, which changed the nomenclature of Federal Inland Revenue Service, FIRS, to Nigeria Revenue Service, NRS, gives the NRS mandate to collect revenues previously handled by agencies such as the Nigeria Customs Service, NUPRC, NPA, and NIMASA.
Key highlights of the tax reform Act, include:
-25% personal income tax applies only to individuals earning above N50 million annually.
-Small businesses owners are exempted from paying income tax.
-Company income tax for medium and large companies will be reduced from 30% to 25% starting in 2026.
-Value Added Tax (VAT) exemptions on essential goods and services consumed by the poor, including food items, medical services, pharmaceuticals, educational fees, and electricity.
-VAT remains at 7.5%, and corporate income tax stays at 30%. NO INCREMENT!
-Introduction of a Development Levy ranging from 4% to 2%, allocated to support the NELFUND, TETFund, NITDA, and NASENI.
