MOST ASKED QUESTIONS ABOUT THE NEW NIGERIAN LAW ON TAXATION AND ANSWER

[Eze BTC]

Fellow Nigerians, I have been seeing alot of misleading information concerning this taxation issue. This made me to have a thought about explaining little about the issue. Carefully go through and learn more.

First and foremost, I would like to state that not all Nigerians will be taxed.


WHO ARE THOSE TO BE TAXED???
This particular tax we're talking about is what will be placed on only income earnings. It is on only money earned from one's hustle. It therefore means that no one will tax you on what is not regarded as income. Meaning that money gotten as gift, loan etc. are not income and can't be taxed.


IS IT ALL INCOME EARNERS THAT ARE TO BE TAXED?
Since last year, we've been seeing funny WhatsApp status that are misleading about tax payments. The gist is that, not all income earnings and earners are to be taxed. Those that earn from the minimum wage and below cannot be taxed. Also, there's a threshold the new law will tax and it is earnings from above 800,000. It means that only those that earn from 800,000 and above will be taxed. To get the threshold, see section 58 of the 2025 Tax Act which shall direct you to the fourth schedule.

IS THE TAXING WEEKLY, MONTHLY OR ANNUALLY??
Let briefly say it is annually. You're expected to make returns to the government and give proper account of your earnings annually. It therefore means that in a year, if you earn 800,000 and below, you will not be taxed. However, where your earning in the year is above 800,000, let's say 900,000, before you get taxed, you are to minus the 800,000 that is not to be taxed from 900,000. It then means that the tax will be on 100, 000. That is your taxable income.


WILL YOUR ENTIRE TAXABLE INCOME BE TAXED?
The answer is no. Even with the 100,000 government cannot tax it entirely. There's something called allowable expenses in business. They are expenses you incurred that can be allowed. For instance, shop rent, transportation of goods etc. You will minus all allowable expenses from the 100,000 above, the remainder is what will be taxed. Mind you, it's just percentage of it that will be taxed. For instance, 15% of the remainder of the 100,000 after deduction of expenses. For allowable expenses, see section 20 of the new 2025 Tax Act

HOW CAN THE TAX BE COLLECTED???
Before I answer, it's funny seeing people putting bank discription as a means of evading tax. Government will not deduct money from your account. It is you that will access yourself and know how much you earn and willingly pay your tax. The discription is only important where you use same account as both business and personal to enable you separate your business money from gifts while assessing yourself. Government can only estimate certain amount only when you fail to assess yourself. Mind you, it will not be deducted from your account. Court will force you to pay it yourself. Also, you can challenge any amount impose on you in court if you feel it's not accurate.
Visit the link to watch the breakdown of how it'd be collected by the Chairman of the Presidential Tax Committee Taiwo Oyedele https://youtu.be/GxGs0a2RKqs?si=KW6xety4PbDGBKdA you can also check Channels TV Twitter post
https://x.com/i/status/2006097840854999382
I sincerely hope this will clear some persons the misconception Goin round.

[Joy- maker]

Your explanations are all clear. But here is the question, where do you get all this information from? Why not provide the source for us so that we can read the source ourselves to confirm if all this thing's you just said are all true.
Because me, am confuse about this tax of a thing, I don't know the angle the Nigeria government is come from, and who and whom will be taxed. Although I believe not all Nigerians will be taxed, but who are those Nigerians to be taxed?

[Sim_card]

I appreciate this information. It means that the tax rate will be small not as big as I thought. I will also love to create a business account strictly for business. It's good that you add the description of why you are sending the money so that, it will reflect too in your statement of account.

[Jubilee58]

Before now, many of us have been paying task. The only thing is that, the task we were paying was not huge. If you are working in a government or private sector, and you have access to your payslip, you will discover that your salary is not always complete, you will see some deductions on your payslip and possibly the tax that you are paying. This time, the tax payment is very pronounced and common sense should tell us is no longer as usual where the tax you were paying does not affect you in any way since the tax was not huge.

My major concern about this present tax reform is that, let it affect the politicians too, and not only the ordinary Nigerians. There is something that I noticed that the federal government of Nigeria does, each time they want to come up with any policy, is always in their own favour. If the people in the position of authority (politicians) will pay their tax appropriately, then it will be a welcomed development.

[Eze BTC]

Your explanations are all clear. But here is the question, where do you get all this information from? Why not provide the source for us so that we can read the source ourselves to confirm if all this thing's you just said are all true.
Because me, am confuse about this tax of a thing, I don't know the angle the Nigeria government is come from, and who and whom will be taxed. Although I believe not all Nigerians will be taxed, but who are those Nigerians to be taxed?

You can check the post now, I have updated it with the needed sources and as well sections from the new 2025 Tax Act.
For those that will be taxed, people earning the minimum wage and anyone earning not more than 800,000 are those that will be taxed. Even those that earn above 800k, they will minus the first 800k before they can tax them. Just go through the post you replied, I already explained it properly above.

Also, I wish to clarify that narration isn't necessary as people claim it is. Like I said above, you are the one to assess yourself. The only reason narration would be important is when you are using one account for both your business and for personal use. In that case, it will help you differentiate which is income (business earnings) and which is personal money. For those running separate accounts for business and personal use, it is not important. Again, as explained earlier, no one will deduct money from your account https://x.com/i/status/2006097840854999382

[Spaceman1000$]

Before now a lot of Nigerians have been paying tax, as most salary earners tax are deducted from source, but the complain is also about the fact that the money that has been generated from the tax so far has not being used judiciously and now you are asking for widening of the tax net, when the one you've been taxing has not been accountable for. In UK for instance, the tax net is very wide, but the dividend of the taxpayer is seen, there is constant electricity, there are good roads, there is social amenities and the whole lot more, but a reverse is the case here in Nigeria.

if you remember very well the President in his inaugural speech removes subsidy, today the money that has been removed and saved from subsidy is unaccounted for, and I've been hearing stories upon stories. So taxing is good but the person asking for this tax is not genuine enough as we can see their antecedence.

[Eze BTC]

Before now a lot of Nigerians have been paying tax, as most salary earners tax are deducted from source, but the complain is also about the fact that the money that has been generated from the tax so far has not being used judiciously and now you are asking for widening of the tax net, when the one you've been taxing has not been accountable for. In UK for instance, the tax net is very wide, but the dividend of the taxpayer is seen, there is constant electricity, there are good roads, there is social amenities and the whole lot more, but a reverse is the case here in Nigeria.

if you remember very well the President in his inaugural speech removes subsidy, today the money that has been removed and saved from subsidy is unaccounted for, and I've been hearing stories upon stories. So taxing is good but the person asking for this tax is not genuine enough as we can see their antecedence.

But the thing is, there's no Government that doesn't involve in taxation no matter how underperforming the government is.

The reason why our government is neglecting us in Nigeria is majorly because the citizens are not united in the fight against bad governance. Even in USA, once their leaders know how weak, nonchalant and afraid the citizens are towards fighting bad leadership, trust me, they will behave like Nigerian leaders. We're not just ready for good governance in the country and it's entirely our fault because we allow it.

Concerning the tax matter, the poor Nigerians are excluded you know? From every lines of the new Tax Act, you can tell that they made the law to target the rich.  Of course they should pay tax. It's just sad that Government is not using the funds for the betterment of the people. But, I still stand that our government misbehave because they know we're afraid and not united to stand against it.

[Spaceman1000$]

Before now a lot of Nigerians have been paying tax, as most salary earners tax are deducted from source, but the complain is also about the fact that the money that has been generated from the tax so far has not being used judiciously and now you are asking for widening of the tax net, when the one you've been taxing has not been accountable for. In UK for instance, the tax net is very wide, but the dividend of the taxpayer is seen, there is constant electricity, there are good roads, there is social amenities and the whole lot more, but a reverse is the case here in Nigeria.

if you remember very well the President in his inaugural speech removes subsidy, today the money that has been removed and saved from subsidy is unaccounted for, and I've been hearing stories upon stories. So taxing is good but the person asking for this tax is not genuine enough as we can see their antecedence.

But the thing is, there's no Government that doesn't involve in taxation no matter how underperforming the government is.

The reason why our government is neglecting us in Nigeria is majorly because the citizens are not united in the fight against bad governance. Even in USA, once their leaders know how weak, nonchalant and afraid the citizens are towards fighting bad leadership, trust me, they will behave like Nigerian leaders. We're not just ready for good governance in the country and it's entirely our fault because we allow it.

Concerning the tax matter, the poor Nigerians are excluded you know? From every lines of the new Tax Act, you can tell that they made the law to target the rich.  Of course they should pay tax. It's just sad that Government is not using the funds for the betterment of the people. But, I still stand that our government misbehave because they know we're afraid and not united to stand against it.

Nobody should tell you that the poor will not be taxed, if the government is telling you that the poor will not be taxed invariably they are telling the poor people that they will indirectly pay for more, if you tax the rich, because obviously they are the ones that have the businesses and big organizations, they will simply just shift the burden of the tax to the citizen by increasing the prices of goods and services, then the poor will now have to buy double of the price of what they usually buy. So if they are increasing the tax net and they are telling you that the poor will not be taxed, they are simply not doing the poor people good.

[Bright0515]

I toke my time to read in between the lines of this post so that I can understand them properly and not to make any mistakes in the future. Thank you for the proper breakdown of this annual tax payment. I'm not happy for this tax new law but there is nothing I can do about it because my voice alone cannot do anything in this country. What is making get angry is the point that the government failed to provide job for it's citizens but they still want to tax them. Let's just hope this tax don't cause chaos in this country. Right now we won get worried untill time to pay the tax reach before our eyes will open.

[Eze BTC]

I toke my time to read in between the lines of this post so that I can understand them properly and not to make any mistakes in the future. Thank you for the proper breakdown of this annual tax payment. I'm not happy for this tax new law but there is nothing I can do about it because my voice alone cannot do anything in this country. What is making get angry is the point that the government failed to provide job for it's citizens but they still want to tax them. Let's just hope this tax don't cause chaos in this country. Right now we won get worried untill time to pay the tax reach before our eyes will open.

You're welcome. Glad it's helpful.
Indeed, it's sad that we're in a country where welfare of citizens don't matter. I pray one day Nigerians see reason to unite and save ourselves. No one can do it for us but we alone.

[Eze BTC]

Before now a lot of Nigerians have been paying tax, as most salary earners tax are deducted from source, but the complain is also about the fact that the money that has been generated from the tax so far has not being used judiciously and now you are asking for widening of the tax net, when the one you've been taxing has not been accountable for. In UK for instance, the tax net is very wide, but the dividend of the taxpayer is seen, there is constant electricity, there are good roads, there is social amenities and the whole lot more, but a reverse is the case here in Nigeria.

if you remember very well the President in his inaugural speech removes subsidy, today the money that has been removed and saved from subsidy is unaccounted for, and I've been hearing stories upon stories. So taxing is good but the person asking for this tax is not genuine enough as we can see their antecedence.

But the thing is, there's no Government that doesn't involve in taxation no matter how underperforming the government is.

The reason why our government is neglecting us in Nigeria is majorly because the citizens are not united in the fight against bad governance. Even in USA, once their leaders know how weak, nonchalant and afraid the citizens are towards fighting bad leadership, trust me, they will behave like Nigerian leaders. We're not just ready for good governance in the country and it's entirely our fault because we allow it.

Concerning the tax matter, the poor Nigerians are excluded you know? From every lines of the new Tax Act, you can tell that they made the law to target the rich.  Of course they should pay tax. It's just sad that Government is not using the funds for the betterment of the people. But, I still stand that our government misbehave because they know we're afraid and not united to stand against it.

Nobody should tell you that the poor will not be taxed, if the government is telling you that the poor will not be taxed invariably they are telling the poor people that they will indirectly pay for more, if you tax the rich, because obviously they are the ones that have the businesses and big organizations, they will simply just shift the burden of the tax to the citizen by increasing the prices of goods and services, then the poor will now have to buy double of the price of what they usually buy. So if they are increasing the tax net and they are telling you that the poor will not be taxed, they are simply not doing the poor people good.

If you read the post carefully, you'd see that I didn't say the poor will not be taxed. I already broke down those to be taxed. I only added that the target is not the poor as a reply to an issue raised. Being a target and being affected are two different things.

Talking about extending the effect on poor masses, they've been paying tax since they one. The new law just made things more clearer and extended categories of people to pay tax. If not that we have irresponsible government, paying tax to the government is not bad. It's just sad that we have government that is careless, extravagant and wasteful in spendings, and very irresponsible.

[Africolo]

Fellow Nigerians, I have been seeing alot of misleading information concerning this taxation issue. This made me to have a thought about explaining little about the issue. Carefully go through and learn more.

First and foremost, I would like to state that not all Nigerians will be taxed.


WHO ARE THOSE TO BE TAXED???
This particular tax we're talking about is what will be placed on only income earnings. It is on only money earned from one's hustle. It therefore means that no one will tax you on what is not regarded as income. Meaning that money gotten as gift, loan etc. are not income and can't be taxed.


IS IT ALL INCOME EARNERS THAT ARE TO BE TAXED?
Since last year, we've been seeing funny WhatsApp status that are misleading about tax payments. The gist is that, not all income earnings and earners are to be taxed. Those that earn from the minimum wage and below cannot be taxed. Also, there's a threshold the new law will tax and it is earnings from above 800,000. It means that only those that earn from 800,000 and above will be taxed. To get the threshold, see section 58 of the 2025 Tax Act which shall direct you to the fourth schedule.

IS THE TAXING WEEKLY, MONTHLY OR ANNUALLY??
Let briefly say it is annually. You're expected to make returns to the government and give proper account of your earnings annually. It therefore means that in a year, if you earn 800,000 and below, you will not be taxed. However, where your earning in the year is above 800,000, let's say 900,000, before you get taxed, you are to minus the 800,000 that is not to be taxed from 900,000. It then means that the tax will be on 100, 000. That is your taxable income.


WILL YOUR ENTIRE TAXABLE INCOME BE TAXED?
The answer is no. Even with the 100,000 government cannot tax it entirely. There's something called allowable expenses in business. They are expenses you incurred that can be allowed. For instance, shop rent, transportation of goods etc. You will minus all allowable expenses from the 100,000 above, the remainder is what will be taxed. Mind you, it's just percentage of it that will be taxed. For instance, 15% of the remainder of the 100,000 after deduction of expenses. For allowable expenses, see section 20 of the new 2025 Tax Act

HOW CAN THE TAX BE COLLECTED???
Before I answer, it's funny seeing people putting bank discription as a means of evading tax. Government will not deduct money from your account. It is you that will access yourself and know how much you earn and willingly pay your tax. The discription is only important where you use same account as both business and personal to enable you separate your business money from gifts while assessing yourself. Government can only estimate certain amount only when you fail to assess yourself. Mind you, it will not be deducted from your account. Court will force you to pay it yourself. Also, you can challenge any amount impose on you in court if you feel it's not accurate.
Visit the link to watch the breakdown of how it'd be collected by the Chairman of the Presidential Tax Committee Taiwo Oyedele https://youtu.be/GxGs0a2RKqs?si=KW6xety4PbDGBKdA you can also check Channels TV Twitter post
https://x.com/i/status/2006097840854999382
I sincerely hope this will clear some persons the misconception Goin round.

Where this informations and who to be taxed presented by the government or it was a mere perceived information from some group of people who assume that's how it's going to be?, because I have not seen this information on any television station nor an official press release from the government on how Nigerians are going to be taxed and who will be excluded from this tax reform that's about to take effect in the country.

Different narratives has been flying very high about how to transfer money and captions to be used in other not to be taxed and we are all confused about it, the government should come out and explain it in a clear language to the citizens on how the tax reform will be implemented and those to be taxed so the tension going round will reduce and people will know their stand. We need to know the benefits of this tax and what Nigerians stands to gain from it, the government can't just tax people that barely feeds it's so bad.

[Eze BTC]

Fellow Nigerians, I have been seeing alot of misleading information concerning this taxation issue. This made me to have a thought about explaining little about the issue. Carefully go through and learn more.

First and foremost, I would like to state that not all Nigerians will be taxed.


WHO ARE THOSE TO BE TAXED???
This particular tax we're talking about is what will be placed on only income earnings. It is on only money earned from one's hustle. It therefore means that no one will tax you on what is not regarded as income. Meaning that money gotten as gift, loan etc. are not income and can't be taxed.


IS IT ALL INCOME EARNERS THAT ARE TO BE TAXED?
Since last year, we've been seeing funny WhatsApp status that are misleading about tax payments. The gist is that, not all income earnings and earners are to be taxed. Those that earn from the minimum wage and below cannot be taxed. Also, there's a threshold the new law will tax and it is earnings from above 800,000. It means that only those that earn from 800,000 and above will be taxed. To get the threshold, see section 58 of the 2025 Tax Act which shall direct you to the fourth schedule.

IS THE TAXING WEEKLY, MONTHLY OR ANNUALLY??
Let briefly say it is annually. You're expected to make returns to the government and give proper account of your earnings annually. It therefore means that in a year, if you earn 800,000 and below, you will not be taxed. However, where your earning in the year is above 800,000, let's say 900,000, before you get taxed, you are to minus the 800,000 that is not to be taxed from 900,000. It then means that the tax will be on 100, 000. That is your taxable income.


WILL YOUR ENTIRE TAXABLE INCOME BE TAXED?
The answer is no. Even with the 100,000 government cannot tax it entirely. There's something called allowable expenses in business. They are expenses you incurred that can be allowed. For instance, shop rent, transportation of goods etc. You will minus all allowable expenses from the 100,000 above, the remainder is what will be taxed. Mind you, it's just percentage of it that will be taxed. For instance, 15% of the remainder of the 100,000 after deduction of expenses. For allowable expenses, see section 20 of the new 2025 Tax Act

HOW CAN THE TAX BE COLLECTED???
Before I answer, it's funny seeing people putting bank discription as a means of evading tax. Government will not deduct money from your account. It is you that will access yourself and know how much you earn and willingly pay your tax. The discription is only important where you use same account as both business and personal to enable you separate your business money from gifts while assessing yourself. Government can only estimate certain amount only when you fail to assess yourself. Mind you, it will not be deducted from your account. Court will force you to pay it yourself. Also, you can challenge any amount impose on you in court if you feel it's not accurate.
Visit the link to watch the breakdown of how it'd be collected by the Chairman of the Presidential Tax Committee Taiwo Oyedele https://youtu.be/GxGs0a2RKqs?si=KW6xety4PbDGBKdA you can also check Channels TV Twitter post
https://x.com/i/status/2006097840854999382
I sincerely hope this will clear some persons the misconception Goin round.

Where this informations and who to be taxed presented by the government or it was a mere perceived information from some group of people who assume that's how it's going to be?, because I have not seen this information on any television station nor an official press release from the government on how Nigerians are going to be taxed and who will be excluded from this tax reform that's about to take effect in the country.

Different narratives has been flying very high about how to transfer money and captions to be used in other not to be taxed and we are all confused about it, the government should come out and explain it in a clear language to the citizens on how the tax reform will be implemented and those to be taxed so the tension going round will reduce and people will know their stand. We need to know the benefits of this tax and what Nigerians stands to gain from it, the government can't just tax people that barely feeds it's so bad.

I dropped sources to support the post. If you read the post very well, you'd see I went as far as even quoting the new Tax Act. There are links from reputable media like Channels TV dropped with the post about the Chairman of the Presidential Tax Committee interview and his responses.

[Alvin_talk]

@OP, I have a pressing question. Let's assume my business belongs in the service providing category (Electrician, Painter, Plumber, etc) and I have a business account. If you are into any of these categories, you can agree with me that a Customer can send up to 500k to you but only a fraction of it is your earning, say 20k, the remainder will be money procuring materials. In a year, your business account could be reading 10 million Naira, meanwhile, your actual profit is below 1 million Naira. What measures are in place to differentiate your income and profit in this regard? Will the government tax you 10 million minus 800k or what?

[Eze BTC]

@OP, I have a pressing question. Let's assume my business belongs in the service providing category (Electrician, Painter, Plumber, etc) and I have a business account. If you are into any of these categories, you can agree with me that a Customer can send up to 500k to you but only a fraction of it is your earning, say 20k, the remainder will be money procuring materials. In a year, your business account could be reading 10 million Naira, meanwhile, your actual profit is below 1 million Naira. What measures are in place to differentiate your income and profit in this regard? Will the government tax you 10 million minus 800k or what?

As explained earlier, there's something called allowable expenses. If the money received in a year is above the 800k, you will first minus the first 800k earning of the year. Whatsoever that comes in are taxable only after deduction of allowable expenses. For instance, in situation where extra 500k is earned after deducting first #800k of the year, in situation like you raised, the expenses will be deducted then the remainder is what would be taxed.

It's also important to know that not all your taxable earnings that'd be taxed. There's a percentage within every threshold like 10%, 15% etc. and we know that 10% of 100 is #10.

Most importantly is the answer to your question. No one will take the entire money. You will remove your expenses. It's the remainder that'd be considered. Also, you are the one that'd assess yourself. Check first post for sources as everything has been addressed earlier.

[Iamgoat]

Fellow Nigerians, I have been seeing alot of misleading information concerning this taxation issue. This made me to have a thought about explaining little about the issue. Carefully go through and learn more.

First and foremost, I would like to state that not all Nigerians will be taxed.


WHO ARE THOSE TO BE TAXED???
This particular tax we're talking about is what will be placed on only income earnings. It is on only money earned from one's hustle. It therefore means that no one will tax you on what is not regarded as income. Meaning that money gotten as gift, loan etc. are not income and can't be taxed.


IS IT ALL INCOME EARNERS THAT ARE TO BE TAXED?
Since last year, we've been seeing funny WhatsApp status that are misleading about tax payments. The gist is that, not all income earnings and earners are to be taxed. Those that earn from the minimum wage and below cannot be taxed. Also, there's a threshold the new law will tax and it is earnings from above 800,000. It means that only those that earn from 800,000 and above will be taxed. To get the threshold, see section 58 of the 2025 Tax Act which shall direct you to the fourth schedule.

IS THE TAXING WEEKLY, MONTHLY OR ANNUALLY??
Let briefly say it is annually. You're expected to make returns to the government and give proper account of your earnings annually. It therefore means that in a year, if you earn 800,000 and below, you will not be taxed. However, where your earning in the year is above 800,000, let's say 900,000, before you get taxed, you are to minus the 800,000 that is not to be taxed from 900,000. It then means that the tax will be on 100, 000. That is your taxable income.


WILL YOUR ENTIRE TAXABLE INCOME BE TAXED?
The answer is no. Even with the 100,000 government cannot tax it entirely. There's something called allowable expenses in business. They are expenses you incurred that can be allowed. For instance, shop rent, transportation of goods etc. You will minus all allowable expenses from the 100,000 above, the remainder is what will be taxed. Mind you, it's just percentage of it that will be taxed. For instance, 15% of the remainder of the 100,000 after deduction of expenses. For allowable expenses, see section 20 of the new 2025 Tax Act

HOW CAN THE TAX BE COLLECTED???
Before I answer, it's funny seeing people putting bank discription as a means of evading tax. Government will not deduct money from your account. It is you that will access yourself and know how much you earn and willingly pay your tax. The discription is only important where you use same account as both business and personal to enable you separate your business money from gifts while assessing yourself. Government can only estimate certain amount only when you fail to assess yourself. Mind you, it will not be deducted from your account. Court will force you to pay it yourself. Also, you can challenge any amount impose on you in court if you feel it's not accurate.
Visit the link to watch the breakdown of how it'd be collected by the Chairman of the Presidential Tax Committee Taiwo Oyedele https://youtu.be/GxGs0a2RKqs?si=KW6xety4PbDGBKdA you can also check Channels TV Twitter post
https://x.com/i/status/2006097840854999382
I sincerely hope this will clear some persons the misconception Goin round.

Thanks for taking your time to make this explanation but I still don't like this policy of a think in a country where trust in government is already in its all time low bringing more taxes rules which have been poorly communicated to the people is insensitive to the current condition of many Nigerians politically, economically and security wise as many of our people are only surviving the economy and not really gaining any serious income from the coffers of the government. I don't even see any serious value in the taxes already collected by this administration plus the oil subsidy removal since it has not significantly change lives or the standard of living of people and now the government is still asking for more. Na wah o!