₦airaland Forum

emmyN:
Why are remote workers exempt from personal income tax when they bring lots of liquidity to the economy?

Ofunaofu:
History will never forget the blue-print he is building

TallNigerian:
This is a good one honestly. Contrary to the misinformation being peddled around, this tax administration Act will protect the lowest earners, NMSMEs and other vulnerable sectors of the economy. It will also streamline taxation and eliminate multiple taxation.

Then the sweetest part is that all the revenue generating agencies that used to siphon revenues will now face a hard time doing that. NRA will now be solely responsible for all revenue collection in Nigeria.

Here are the key advantages of the recently signed tax reform bills in Nigeria:

Simplified tax administration
Creation of the Nigeria Revenue Service (NRS) replaces multiple collection agencies, streamlining tax filing and reducing overlapping levies.

Relief for low‑income earners
Personal Income Tax (PAYE) exemption for annual incomes up to ₦1 million (₦83 k/month), while those earning up to ₦1.7 million/month get reduced rates. Essential goods like food, healthcare, education, electricity, and public transport are zero-rated for VAT.

SME and micro‑business incentives
Threshold for SME registration raised from ₦25 million to ₦50 million in annual turnover, with full exemption from Company Income Tax (CIT), VAT, and withholding tax—supporting the backbone of the Nigerian economy.

VAT ease & export encouragement
Exports of goods, services, and IP are zero-rated for VAT. Input VAT credits on purchases are now clearer—reducing production costs.

Remote work support
Nigerians working remotely for foreign employers (outside Nigeria) are exempt from PIT—encouraging participation in the global digital economy.

Benefits for States & Federalism

New VAT-sharing formula
VAT distribution now gives Federal Government 10%, States 55%, Local Governments 35%. States under “place of consumption” model will see increased revenue—boosting fiscal autonomy.

State revenue empowerment
States gain authority over LLP taxes, lottery/gaming levies, stamp duties, and receive 5% of federal VAT. Bonds issued by states are also tax-exempt—making state finance more independent.

Fiscal coordination via Joint Revenue Board
Harmonised tax administration and audit frameworks across federal, state, and local levels—with the establishment of the Joint Revenue Board ensuring stronger intergovernmental collaboration.

Transparency, Dispute Resolution & Tax Fairness

Office of Tax Ombudsman & Appeal Tribunals
Provides a streamlined, 14‑day window for resolving taxpayer grievances, reducing enduring disputes and arbitrary assessments.

Nuisance tax repeal & progressive tax structure
More than 50 redundant levies eliminated. Tax rates for PIT, VAT, and capital gains restructured progressively—shielding low-income earners.

Increased transparency
Establishment of the Tax Ombudsman and harmonised tax laws fosters accountability across MDAs, building trust with taxpayers.

Boost to Revenue & Economic Growth

Wider tax base, higher compliance
Digital filing systems and single-windows reduce compliance costs, encourage formalisation and broaden the tax net—currently low at 10.8% of GDP.

Stimulus for investment and job creation
Tax credits, CIT reduction from 30% to 25%, exemption for remote service PIT incentives, and export reliefs help boost business, drive employment, and attract capital.

Oil sector stimulus
New executive order grants up to 20% tax credits to oil companies that achieve cost-efficiencies—intensifying productivity in a vital revenue stream.

seanfer:
Are you the appointed Spokesperson for nairaland community?

TallNigerian:
This is a good one honestly. Contrary to the misinformation being peddled around, this tax administration Act will protect the lowest earners, NMSMEs and other vulnerable sectors of the economy. It will also streamline taxation and eliminate multiple taxation.

Then the sweetest part is that all the revenue generating agencies that used to siphon revenues will now face a hard time doing that. NRA will now be solely responsible for all revenue collection in Nigeria.

Here are the key advantages of the recently signed tax reform bills in Nigeria:

Simplified tax administration
Creation of the Nigeria Revenue Service (NRS) replaces multiple collection agencies, streamlining tax filing and reducing overlapping levies.

Relief for low‑income earners
Personal Income Tax (PAYE) exemption for annual incomes up to ₦1 million (₦83 k/month), while those earning up to ₦1.7 million/month get reduced rates. Essential goods like food, healthcare, education, electricity, and public transport are zero-rated for VAT.

SME and micro‑business incentives
Threshold for SME registration raised from ₦25 million to ₦50 million in annual turnover, with full exemption from Company Income Tax (CIT), VAT, and withholding tax—supporting the backbone of the Nigerian economy.

VAT ease & export encouragement
Exports of goods, services, and IP are zero-rated for VAT. Input VAT credits on purchases are now clearer—reducing production costs.

Remote work support
Nigerians working remotely for foreign employers (outside Nigeria) are exempt from PIT—encouraging participation in the global digital economy.

Benefits for States & Federalism

New VAT-sharing formula
VAT distribution now gives Federal Government 10%, States 55%, Local Governments 35%. States under “place of consumption” model will see increased revenue—boosting fiscal autonomy.

State revenue empowerment
States gain authority over LLP taxes, lottery/gaming levies, stamp duties, and receive 5% of federal VAT. Bonds issued by states are also tax-exempt—making state finance more independent.

Fiscal coordination via Joint Revenue Board
Harmonised tax administration and audit frameworks across federal, state, and local levels—with the establishment of the Joint Revenue Board ensuring stronger intergovernmental collaboration.

Transparency, Dispute Resolution & Tax Fairness

Office of Tax Ombudsman & Appeal Tribunals
Provides a streamlined, 14‑day window for resolving taxpayer grievances, reducing enduring disputes and arbitrary assessments.

Nuisance tax repeal & progressive tax structure
More than 50 redundant levies eliminated. Tax rates for PIT, VAT, and capital gains restructured progressively—shielding low-income earners.

Increased transparency
Establishment of the Tax Ombudsman and harmonised tax laws fosters accountability across MDAs, building trust with taxpayers.

Boost to Revenue & Economic Growth

Wider tax base, higher compliance
Digital filing systems and single-windows reduce compliance costs, encourage formalisation and broaden the tax net—currently low at 10.8% of GDP.

Stimulus for investment and job creation
Tax credits, CIT reduction from 30% to 25%, exemption for remote service PIT incentives, and export reliefs help boost business, drive employment, and attract capital.

Oil sector stimulus
New executive order grants up to 20% tax credits to oil companies that achieve cost-efficiencies—intensifying productivity in a vital revenue stream.

Ameboperoo:
I wish to see the content of the bill.
Also, when is it effective?

Segun198019:
And VAT is now more than double. All these peanut crew, that don't even know the content of the bill

emmyN:
Why are remote workers exempt from personal income tax when they bring lots of liquidity to the economy?

TallNigerian:
This is a good one honestly. Contrary to the misinformation being peddled around, this tax administration Act will protect the lowest earners, NMSMEs and other vulnerable sectors of the economy. It will also streamline taxation and eliminate multiple taxation.

Then the sweetest part is that all the revenue generating agencies that used to siphon revenues will now face a hard time doing that. NRA will now be solely responsible for all revenue collection in Nigeria.

Here are the key advantages of the recently signed tax reform bills in Nigeria:

Simplified tax administration
Creation of the Nigeria Revenue Service (NRS) replaces multiple collection agencies, streamlining tax filing and reducing overlapping levies.

Relief for low‑income earners
Personal Income Tax (PAYE) exemption for annual incomes up to ₦1 million (₦83 k/month), while those earning up to ₦1.7 million/month get reduced rates. Essential goods like food, healthcare, education, electricity, and public transport are zero-rated for VAT.

SME and micro‑business incentives
Threshold for SME registration raised from ₦25 million to ₦50 million in annual turnover, with full exemption from Company Income Tax (CIT), VAT, and withholding tax—supporting the backbone of the Nigerian economy.

VAT ease & export encouragement
Exports of goods, services, and IP are zero-rated for VAT. Input VAT credits on purchases are now clearer—reducing production costs.

Remote work support
Nigerians working remotely for foreign employers (outside Nigeria) are exempt from PIT—encouraging participation in the global digital economy.

Benefits for States & Federalism

New VAT-sharing formula
VAT distribution now gives Federal Government 10%, States 55%, Local Governments 35%. States under “place of consumption” model will see increased revenue—boosting fiscal autonomy.

State revenue empowerment
States gain authority over LLP taxes, lottery/gaming levies, stamp duties, and receive 5% of federal VAT. Bonds issued by states are also tax-exempt—making state finance more independent.

Fiscal coordination via Joint Revenue Board
Harmonised tax administration and audit frameworks across federal, state, and local levels—with the establishment of the Joint Revenue Board ensuring stronger intergovernmental collaboration.

Transparency, Dispute Resolution & Tax Fairness

Office of Tax Ombudsman & Appeal Tribunals
Provides a streamlined, 14‑day window for resolving taxpayer grievances, reducing enduring disputes and arbitrary assessments.

Nuisance tax repeal & progressive tax structure
More than 50 redundant levies eliminated. Tax rates for PIT, VAT, and capital gains restructured progressively—shielding low-income earners.

Increased transparency
Establishment of the Tax Ombudsman and harmonised tax laws fosters accountability across MDAs, building trust with taxpayers.

Boost to Revenue & Economic Growth

Wider tax base, higher compliance
Digital filing systems and single-windows reduce compliance costs, encourage formalisation and broaden the tax net—currently low at 10.8% of GDP.

Stimulus for investment and job creation
Tax credits, CIT reduction from 30% to 25%, exemption for remote service PIT incentives, and export reliefs help boost business, drive employment, and attract capital.

Oil sector stimulus
New executive order grants up to 20% tax credits to oil companies that achieve cost-efficiencies—intensifying productivity in a vital revenue stream.

emmyN:
Why are remote workers exempt from personal income tax when they bring lots of liquidity to the economy?

kolente:
This is the single biggest achievement of the Tinubu Administration.

The integrity and laser sharp expertise of the Tax subject of Taiwo Oyedele makes me believe that this new Tax Administration model will work.

Zacch Adedeji (PhD) is also reported to be one of the most effective public servant and poser boy of the Tinubu Administration supretending over the biggest revenue windfall in the recorded history of Nigeria.

History will be fair to Taiwo Oyedele, Zacch Adedeji (PhD) and PBAT.

Congratulations.

aribisala0:
They are probably taxed at source

In the country where the funds for salary comes from

Ofunaofu:
No one has any negative news. Stop looking for what isn't lost.

emkz:
Expected Breaking News: Peter Obi attacks Tinubu's tax reform bills. Argues that you cannot tax people who are poor. Says that lifting people out of poverty is a better approach.

Dear Peter Obi, give us kilometer by kilometer breakdown or cost per kilometer of how to lift people out of poverty, especially multidimensional poverty.

If you wake Peter Obi from sleep, the first thing he'd say is "poverty". If you greet him good morning, his response would be "multidimensional poverty".

Congratulations to the Federal Republic of Nigeria for taking the first step to tax reforms. People who earn below a certain threshold would be exempted from income tax. States with more economic activities will make more money from taxes which will stimulate competition from states.

cokoesang:
That will be double taxation since the remote country in which the job is domiciled will already tax the employee