Nigerian New Laws and Bills
Overview of New Nigerian Laws and Bills
In 2025, President Bola Ahmed Tinubu signed
several significant laws aimed at reforming Nigeria's tax system and governance. These laws are set to take effect on January 1, 2026.
Key Legislation
1. Nigeria Tax Act (NTA)
• Purpose: Overhauls the tax framework to streamline compliance and broaden the tax base.
• Key Changes:
• Consolidates multiple tax laws into a single statute.
• Introduces a top-up tax for Nigerian parent companies to meet global minimum tax rates.
• Implements controlled foreign company rules to tax undistributed profits of foreign entities controlled by Nigerian companies.
2. Nigeria Tax Administration Act (NTAA)
• Purpose: Establishes a unified administrative framework for tax collection.
• Key Features:
• Empowers the newly formed Nigeria Revenue Service (NRS) to issue advance tax rulings.
• Aims to improve tax compliance and reduce disputes.
3. Nigeria Revenue Service Act (NRSA)
• Purpose: Transforms the Federal Inland Revenue Service (FIRS) into a more autonomous and digitally-enabled NRS.
• Key Objectives:
• Expands the mandate to collect both tax and non-tax revenues.
• Enhances enforcement capabilities.
4. Joint Revenue Board Act (JRBA)
• Purpose: Establishes a framework for collaboration between federal and state revenue authorities.
• Key Goals:
• Streamlines revenue collection processes.
• Improves efficiency in tax administration.
Implementation Considerations
Businesses and taxpayers are advised to:
• Review the impact of these laws on their tax obligations.
• Update compliance processes to align with new regulations.
• Engage in training and sensitization workshops to ensure smooth adoption of the new laws.
These reforms are expected to significantly reshape Nigeria's economic landscape and improve tax administration practices
In 2025, President Bola Ahmed Tinubu signed
several significant laws aimed at reforming Nigeria's tax system and governance. These laws are set to take effect on January 1, 2026.
Key Legislation
1. Nigeria Tax Act (NTA)
• Purpose: Overhauls the tax framework to streamline compliance and broaden the tax base.
• Key Changes:
• Consolidates multiple tax laws into a single statute.
• Introduces a top-up tax for Nigerian parent companies to meet global minimum tax rates.
• Implements controlled foreign company rules to tax undistributed profits of foreign entities controlled by Nigerian companies.
2. Nigeria Tax Administration Act (NTAA)
• Purpose: Establishes a unified administrative framework for tax collection.
• Key Features:
• Empowers the newly formed Nigeria Revenue Service (NRS) to issue advance tax rulings.
• Aims to improve tax compliance and reduce disputes.
3. Nigeria Revenue Service Act (NRSA)
• Purpose: Transforms the Federal Inland Revenue Service (FIRS) into a more autonomous and digitally-enabled NRS.
• Key Objectives:
• Expands the mandate to collect both tax and non-tax revenues.
• Enhances enforcement capabilities.
4. Joint Revenue Board Act (JRBA)
• Purpose: Establishes a framework for collaboration between federal and state revenue authorities.
• Key Goals:
• Streamlines revenue collection processes.
• Improves efficiency in tax administration.
Implementation Considerations
Businesses and taxpayers are advised to:
• Review the impact of these laws on their tax obligations.
• Update compliance processes to align with new regulations.
• Engage in training and sensitization workshops to ensure smooth adoption of the new laws.
These reforms are expected to significantly reshape Nigeria's economic landscape and improve tax administration practices
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