VAT rate proposed for phased-review as follows, in:

– 2024, remains at 7.5%
– 2025, moves to 10% as CIT rate reduces to 27.5%

– 2026, moves to 12.5% as CIT reduces to
25%, and

– 2030, moves to 15% (in line with ECOWAS rate).

Companies Income Tax:

1. Small companies: 0%.

2. Large companies:
27.5% in assessment year 2025; and
25% in assessment year 2026.

– Companies are reclassified into two – small and large. Threshold for small taxpayers increased to N50m

Consolidating all the earmarked taxes into a development levy at 4% which will be progressively reduced to 2% over 5 years.

• Minimum tax is repealed

• The global minimum tax for only multinationals and very large companies introduced in line with the OECD Pillar 2.

Personal Income Tax:

– Individuals are taxed on a sliding scale of 0% to 25%.

– Individuals that earn N800,000 p.a. or less to enjoy 0% tax rate

– Employment income accruing in Nigeria to a non-resident individual will not be taxed in Nigeria except where the employment is exercised in Nigeria.

VAT E-Invoicing:

Legal framework for fiscalisation and e- invoicing system.

VAT Refund:

– VAT refund is to be made within 30 days of application without the need for a prior audit.

– Government is to share net VAT revenue after setting aside the funds required for VAT refund-claims.

– FIRS to submit monthly reconciliation schedule of refund claims, payments and funding.

– Penalty, including blacklisting or prosecution for false or fraudulent VAT refund claim.

– Businesses with turnover below N50
million relieved of VAT obligations.