A comprehensive breakdown of the new tax laws, including changes to PAYE bands, VAT, and company income tax.
The Finance Act 2025 represents a significant shift in Nigeria's fiscal landscape. Signed into law earlier this year, it introduces critical amendments aimed at simplifying tax compliance and boosting revenue.
1. Revised PAYE Tax Bands
The most direct impact on individuals is the adjustment of Personal Income Tax bands. The tax-free threshold has been effectively increased to accommodate inflation.
2. VAT Modifications
While the standard VAT rate remains, new exemptions have been introduced for essential food items and educational materials.
3. Technology and Compliance
The Act empowers the FIRS to deploy more advanced technology for tax collection, making it crucial for businesses to automate their filing processes.
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