I greet una my country people, una good day…by now I hope say everybody don hear about the new tax reform wey the government wan implement by next year on the 1 January 2026.
But Wetin I wan discuss for here be how the tax reform go affect people earning through crypto. The new tax reform don make an mandatory for everybody earning above N800k annually to pay personal income tax with the highest personal income tax reaching almost 25%.
Most people here earn above N800k annually and e mean say almost all of all here go dey pay tax by next year. Below is the breakdown of the tax bracket and the tax they are supposed to pay:
First N800k- 0%
Next N2.2million- 15%
Next N9million- 18%
Next N13million- 21%
Next N25million- 23%
Next above N50million- 25%So with what we can see above, it mean say pesin wey dey earn above N50million annually go pay 25% of the money wey him dey earn to the government as tax.
People earning through crypto- How the government go take know their income?As a pesin earning through crypto, the government go know Wetin you dey earn if your dey do transactions wey exceed N5million monthly through the new law wey dem put.
Nigerian banks have been mandated to report all customers accounts with monthly transactions exceeding N5million to the tax authorities.
The new law mean say if you dey do transactions wey pass N5million monthly, the bank wey you dey use go report your account to Nigerian tax authorities. At the end of the year you will be subjected to personal income tax by evaluating which part of the money is your income.
As someone struggle with the small money wey you dey get through crypto, and your annual income exceed N800k, the new tax reform will make it mandatory for you to pay your taxes if they know the actual amount of your annual income but if they don’t know your exact annual income they might not be able to impose tax on you.
The only way the government will know your income is you, you will be the one to allow them know you exact income and if they do, you are mandated to pay taxes.
Nevertheless payment of taxes is an obligation on every citizen of the country.
Note: This is an informative post/thread , so feel free to share helpful information about the topic so others can add more knowledge..
