Reference
Plain-language introductions to the main laws and tax areas. Always confirm the rule version and effective date that apply to your tax year and circumstances.
The Nigeria Tax Act 2025 consolidates the main rules for taxing income, profits, transactions and gains. It provides the framework for company income tax, personal income tax, VAT, development levy and related reliefs from 1 January 2026.
The Nigeria Tax Administration Act 2025 sets the common rules for registration, returns, assessments, payment, record keeping, audits, objections, appeals, penalties and enforcement. Good compliance therefore depends on both the tax calculation and the process followed.
Value added tax applies to taxable supplies of goods and services. Businesses must determine whether a supply is taxable, exempt or zero-rated, issue the correct documentation, account for output VAT and support any input VAT claimed.
Withholding tax is deducted at source from specified payments and remitted to the appropriate tax authority. The applicable treatment depends on the payment, recipient and governing rule, while valid credits may reduce the recipient's final tax payable.
Corporate tax starts with accounting profit and adjusts it for non-deductible expenses, exempt income, capital allowances, losses, credits and any special regime. Company size, activities and group status may affect the final computation and filing obligations.
Personal income tax brings together employment, business, investment, rental and other taxable income, then applies available deductions, reliefs, credits and progressive tax bands. Residence and the source of income can affect the result.
Presumptive tax provides a simplified basis for eligible taxpayers whose income cannot be readily determined from complete records. Eligibility, the prescribed basis and the responsible authority must be confirmed for the relevant year before it is used.
Practical preparation
Essential records and checks for different taxpayers. These guides help you prepare; they do not replace advice based on your full facts.
Identify every source of income, keep evidence for allowable deductions and reliefs, retain tax deduction certificates, and reconcile tax already paid before submitting an annual return.
Review salary, benefits and other employment income against PAYE deducted by the employer. Keep annual pay records and disclose additional income that is not already covered through payroll.
Maintain invoices, bank records and evidence of business expenses, separate personal spending from business costs, track WHT credits and assess whether VAT registration or other obligations apply.
Keep complete books, classify revenue and expenses consistently, reconcile VAT and WHT, maintain an asset register and confirm which company-size rules, exemptions and filing dates apply.
Build the return from approved financial statements, document tax adjustments, maintain capital allowance and loss schedules, reconcile credits and payments, assess special regimes, and complete review and approval before filing.
Use and monitor
Estimate VAT, WHT and PAYE using versioned rules for the selected tax year. Results are indicative and should be reviewed against the complete transaction or taxpayer facts.
Open tax calculators →Track registration, return, remittance and payment deadlines for the obligations that apply to you. Due dates can differ by tax, taxpayer and event, so confirm the current official deadline before acting.
Open the tax calendar →Find direct answers about tax computations, subscriptions, tax-year access, security, exports, review workflows and working with clients in ActivEdge TaxPrep.
Read tax FAQs →Follow changes to legislation, administrative guidance, filing procedures and effective dates. A change should be applied only after its authority, commencement date and affected taxpayers are confirmed.
This Knowledge Centre provides general information, not tax or legal advice. Laws, guidance and filing procedures may change. Review the relevant legislation and official guidance or consult a qualified adviser before making a filing decision.
