The Federal Government has unveiled a comprehensive list of 50 tax exemptions and reliefs aimed at reducing the financial burden on Nigerians and stimulating economic growth under the new tax reform laws.

The announcement was made on Monday by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, in a post on X.

According to Oyedele, the reforms, which will take effect from January 1, 2026, are designed to support low-income earners, average taxpayers, and small businesses.

Recall that President Bola Tinubu had, in June, signed into law four major tax reform bills: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

Below is the full list of the 50 tax exemptions and reliefs announced by the Federal Government:

Personal Income Tax or PAYE

  1. Individuals earning the national minimum wage or less (exempt)
  2. Annual gross income up to ₦1,200,000 (translating to about ₦800,000 taxable income) is exempt
  3. Reduced PAYE tax for those earning annual gross income up to ₦20 million
  4. Gifts (exempt)

Allowable Deductions & Reliefs for Individuals

  1. Pension contribution to PFA
  2. National Health Insurance Scheme (NHIS)
  3. National Housing Fund contributions
  4. Interest on loans for owner-occupied residential housing
  5. Life insurance or annuity premiums
  6. Rent relief – 20% of annual rent (up to ₦500,000)

Pensions & Gratuities – Exempt

  1. Pension funds and assets under the Pension Reform Act (PRA)
  2. Pension, gratuity, or any retirement benefits granted under the PRA
  3. Compensation for loss of employment up to ₦50 million

Capital Gains Tax (CGT) – Exempt

  1. Sale of an owner-occupied house
  2. Personal effects or chattels worth up to ₦5 million
  3. Sale of up to two private vehicles per year
  4. Gains on shares below ₦150 million per year or gains up to ₦10 million
  5. Gains on shares above the exemption threshold if proceeds are reinvested
  6. Pension funds, charities, and religious institutions (non-commercial)

Companies Income Tax (CIT) – Exempt

  1. Small companies (turnover not more than ₦100 million and total fixed assets not more than ₦250 million) pay 0% tax
  2. Eligible (labelled) startups are exempt
  3. Compensation relief – 50% additional deduction for salary increases, wage awards, or transport subsidies for low-income workers
  4. Employment relief – 50% deduction for salaries of new employees hired and retained for at least three years
  5. Five-year tax holiday for agricultural businesses (crop production, livestock, dairy, etc.)
  6. Gains from investment in a labelled startup by venture capitalists, private equity funds, accelerators, or incubators

Development Levy – Exempt

  1. Small companies are exempt from the 4% development levy

Withholding Tax – Exempt

  1. Small companies, manufacturers, and agric businesses are exempt from withholding tax deduction on their income
  2. Small companies are exempt from deductions on payments to suppliers

Value Added Tax (VAT) – 0% or Exempt

  1. Basic food items – 0% VAT
  2. Rent – exempt
  3. Education services and materials – 0% VAT
  4. Health and medical services – exempt
  5. Pharmaceutical products – 0% VAT
  6. Small companies (≤ ₦100m turnover) are exempt from charging VAT
  7. Diesel, petrol, and solar power equipment – VAT suspended or exempt
  8. Refund of VAT on assets and overheads used to produce VATable or 0% VAT goods and services
  9. Agricultural inputs – fertilizers, seeds, seedlings, feeds, and live animals
  10. Purchase, lease, or hire of equipment for agricultural purposes
  11. Disability aids – hearing aids, wheelchairs, braille materials
  12. Transport – shared passenger road transport (non-charter)
  13. Electric vehicles and parts – exempt
  14. Humanitarian supplies – exempt
  15. Baby products – exempt
  16. Sanitary towels, pads, or tampons – exempt
  17. Land and buildings – exempt

Stamp Duties – Exempt

  1. Electronic money transfers below ₦10,000
  2. Salary payments
  3. Intra-bank transfers
  4. Transfers of government securities or shares
  5. All documents for the transfer of stocks and shares

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