₦airaland Forum

Aside the tax u are paying On Treasury bill and fixed deposits,u are not bound to pay additional tax.

Read below for better understanding.



Home Financial Literacy
How Nigeria’s 2026 Tax Reforms affect your income, business and Crypto
Kalu Aja by Kalu Aja September 21, 2025

Company tax
Nigeria has passed a comprehensive review of taxes, which will take effect on January 1st 2026. In this post, I will highlight a few changes on the personal side, the implications and how you can get tax relief.

Just so you know, this information is provided for educational purposes only and should not be considered tax or financial advice. Please consult your tax or professional adviser.

If you earn personal income below N800,000, you pay zero income tax. Your company has a turnover below N50m, and you pay zero corporate income tax. The significant change under this tax law is that you have to invest or make certain purchases to avoid taxes.

Tax avoidance is legal, tax evasion is illegal
Under current law (until December 31, 2025), you receive 20% of your gross income, plus a N200k or 1% of your gross income, whichever is higher, as tax relief automatically. The new law does not make this automatic; instead, you must make an investment to claim a deduction.

Invest in what?
Open and contribute to a Retirement Savings Account
Buy life insurance for you and your spouse
Open and contribute to the National Health Insurance Scheme
Open and contribute to the national housing fund
 ⁠If you pay rent, you get 20% relief on rent paid, subject to a cap of N500,000
Scenarios
I am currently unemployed, but my uncle in the US sends me $100, which is paid into my Nigerian bank account.

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Do I pay income tax? On N100,000 paid into my account? No, below N800,000, but I pay other taxes like VAT, electronic transfer
I buy BTC with my N100,000, sell for N200,000, make N100,000 profit, do I pay income tax on N100,000? No, below N800,000, but I pay other taxes like VAT, electronic transfer
I buy BTC with my N100,000, sell for N2,000,000, and make N1,900,000 profit. Do I pay income tax on N1,900,000 profit? Yes, income above N800,000, plus  I pay other taxes like VAT, and electronic transfer
 ⁠I buy BTC with my N100,000, but under my company name, sell for N2,000,000, and make N1,900,000 profit. Do I pay income tax on N1,900,000 profit? No, profit made under the company name, but I pay other taxes like VAT, and electronic transfer.
Does my business pay tax on N1,900,000 profit? No, turnover less than N50m, but the company pays other taxes like VAT, electronic transfer
Do you have a registered company?
You are taxed on the income you earn, not on the assets you own.

Let’s also review investment vehicles.

Crypto Assets: If you own 1 BTC, you pay no tax. If you sell 1 BTC at a loss, no tax is due. If you sell 1 BTC at a profit, you pay tax. Staking BTC? Yes, income from staking is taxable.


Bank Accounts: if you have N1m in your current account earning no interest, there is no taxable income. What if that N1m is moved to your savings account, and you earn 10%? Then you pay tax on the 10% interest earned, not on the N1m.

What if someone transfers cash to your account? This creates a transaction record. Will you pay tax? If the cash moves into your interest-bearing account, yes, on the interest earned. I believe your bank will report the interest earned to NRS.

Are all transfers to and from your account subject to tax? Tax is not solely assessed on your bank balance; authorities will review your transactions to identify taxable activities. Your transactions may be used as a basis for an assessment based on best judgment. Translation? Please don’t deposit non-business checks into your account.

Bonds? FGN bonds are tax-exempt, meaning interest earned is tax-free.

Insurance? Premium payments are tax-free when you purchase a policy and pay premiums.

Retirement savings account? Contributions are tax-free, growth is tax-free, and withdrawals are also tax-free.

Rent? You are entitled to a relief of 20% of the tax paid, subject to a maximum of N500,000.

Stocks? Holding? No tax.Selling at a profit? Pay tax on the profit.

What if it’s a gift or inheritance? Generally, no tax.

What should you do next?
Get tax advice. Gather your friends, contribute money, and hire a tax professional to speak to your “club” and pay the fees. Hire an accountant

Businesspersons should keep receipts and documentation, scan them, and file them. Use more cards and fewer cash transactions to create an audit trail. Hire an accountant.

Remember, it is the income generated that is taxable, not the asset itself.

Leave that ur comfort place and u will be well my brother.

Awolowo was a con man...who died a miserable death akin to frustration.

Greedy man.

Soon,he too would end up like Odili,Amaechi or Ibori.

Everything must end one day.

Softmirror:
From my observations on Nairaland. There are a group on individuals on Nairaland who were benefiting so much from Jonathan's administration. These group of individuals always cry about their loss at every single opportunity while Jonathan has moved on with his own life.

U have nothing reasonable to say.

Statistically,yoruba people are suffering more than any region in this country,na tribalism dey make una feel say everything dey okay.

Just keep quiet...must people benefit from govt before he or she says the truth.

Ogun state the shame of a state with the worst ever governor in Nigerian history.

The only state with the worst roads ever...bad infrastructures,bad leaders,human deaths littered almost every where as a result of rituals.

IduNaOba:
After Alex Otti
His wife should take over then his son and his daughter then their distant relatives.
I am in aba for a project, the light here is at least 22 hours a day.
Prepaid and cheap.
Honestly even if its expensive, I won't have issues because it's always available.
What about road network?
The best in Nigeria!
Anambra is better state wide but city wide, aba is the best.
Everywhere is quiet, businesses booming, peace and love, revenue generation has been digitised, Otti has done super well.
Going back to base soon but I go soon come back again to flex aba light and fine roads.
In fact I go take pictures when I go out today
Hotel here is cheap too
Food is cheap too
I no dey finish 2k food at a sitting 😀

After his wife,his brother should take over.

This guy simplified governance.

Lekby25:
Yes he has the right to contest. But he has lost many of his chances he had in the past. He can't win.

Sensibly,u are not the umpire here and never say never. That is politics.

Obagreatdatoye:
He will contest till he enter the grave ...likewise Peter obi

Everyone has right to contest...no law bars him from contesting.

This statement doesn't hold water.

Sirmwill:
If competition turns hostile, he is ready for the fight


I laugh in north

With the likes of Dangote,Otedola it would be hard for young men to venture into manufacturing because of their tendencies to monopolised everything they are intereting in.

He uses govt power to out rival his competitors without pity.

Now,that he has ventured into fertiliser,he would block that avenue for investors in that sector.

He met dollar at 780 or there about...this is pure propaganda until it gets to where he met it.

Belurved1:
*To correct u aunty,there is nothing like yemoja or mermaid.*

Is that what the elderly people around you taught you? Please respond if; Yes or No

Don't be offended, I just wanted to confirm something first.

The elderly people were lied to using fictitious stories to back it up.

I was told similar lies but as I grew up I did my search and found out they were myths and not real.

If u don't dispel some of these lies we were told,my dear u are living in the past.

Additionally,many have been held down by religious myths,thoughts and beliefs such as this.

Dispel them and free up ur mind for better thoughts.

pocohantas:
What does he want to use it for and why is he forcing it into his tiny canoe? Smh!
Everything we see, we chop.
We go soon chop yemoja.

To correct u aunty,there is nothing like yemoja or mermaid.

They are pure fictions and can not be proven till this day.

Nawah!

No wonder nothing is working in this country.
Just imagine how they have squandered the country deep and the poor still support them.

AwkaFinest:
We are talking of actual production and you are here talking of reserve...

The production process is what he posted. He is in fact up to date.

U are just sinking into poverty the more.

All of these things u have mentioned can never take u out of this bondage you found yourself now.

Someone that is earning 70k and still wants to buy a car for Uber would need about 15years to save 9million at 50k per month.

How are u going to do this? Or do u want to buy a Nigerian used for Uber...that is another wahala waiting to explode.

Your income is your major set back here. Just try and improve it,as it's among the poorest in the country. 840k per annum is never worth it at all.

AwkaFinest:
Gas capital? The last stats posted here showed Drlta state led in crude oil production, while River State led in gas production. So how did Owerri become the gas capital?

U are not informed too.

No doubt,the largest gas reserve is in Imo state Nigeria. The largest in Africa.

Imo State has the largest gas reserves in the region and is considered one of the largest oil reserves in the world and the richest gas-producing states in Nigeria, with an estimated 200 trillion cubic feet (TCF) of proven reserves.

If u are not happy,just cry and sleep small Na God do am for us.
Enugu is on the pipeline soon.

DeLaRue:
I think Mr Obi still doesn't realise this is not 2023.

At least half of those who vote for him then will not bother next time around.

U are on ur own.

Keep dishing it out lies just to make yourself feel right.

What a humble gesture.

It can only be Chelsea football club.

Save oooh.

I will not say more.

Igbos will always blend into other tribe...

Eat with them,suffer with them and come out great.

Tinubu's economy is doing well...it is going as they want, pushing both good and bad people into unexplained poverty.

What a govt!

seanfer:
This OP is becoming a broken alarm...
Always having something to say about people who did not align with his political view....
Today interested in naija politics tomorrow in support of secession..

Because u don't know the way Easterners vote...just look away if u are not comfortable with the truths in his statement.

gidgiddy:
Nobody in APGA is going to vote for Tinubu in 2027, even Soludo knows this. Soludo seems to have short memory

In 2023, his party APGA fielded an Igbo man as its Presidential candidate. Peter Obi swept Anambra with over 90% of the votes. Hardly anyone in APGA voted for the APGA candidate.

In 2027, Soludo and APGA have adopted Bola Tinubu as Presidential candidate. Soludo knows how highly unpopular Tinubu is, not just in Anambra, but amongst Igbos. Tinubu is even less popular than the person Soludo fielded in 2023.

In 2027, Soludo will be the only APGA member to vote for Tinubu.

If they like let them collect trillions from Tinubu,he will lose again in all the Eastern States and the surrounding South south states.

This things only happens in the western part of Nigeria.

U can't try it in the east and the north as a whole.

If u know how much that family must have spent on tracking...u won't even think of thanking the police.

Thank police...for their job again.

Again,what are they using their 124.4billion budget on.

Sannisege:
I guess there’s a new definition of integrity. A man that jumped from APGA - PDP -LP - ADC has integrity abi. Shameless lot.

Then, u don't know anything about integrity.

Just keep quiet.