The Federal Government has released a detailed list of 50 tax exemptions and reliefs introduced to ease the financial strain on citizens and boost economic growth under the newly enacted tax reform laws.
The announcement was made on Monday by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, through a post on X.
Oyedele explained that the reforms, which will take effect on 1 January 2026, are targeted at supporting low-income earners, average taxpayers, and small-scale businesses.
In June, President Bola Tinubu signed into law four key 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.
According to the Federal Government, the following is the complete list of 50 tax exemptions and reliefs intended to benefit the general public.
Below is the full list of the 50 tax exemptions and reliefs.
๐๐๐ซ๐ฌ๐จ๐ง๐๐ฅ ๐๐ง๐๐จ๐ฆ๐ ๐๐๐ฑ ๐จ๐ซ ๐๐๐๐
- Individuals earning the national minimum wage or less (exempt)
- Annual gross income up to โฆ1,200,000 (translating to about โฆ800,000 taxable income) is exempt
- Reduced PAYE tax for those earning annual gross income up to โฆ20 million
- Gifts (exempt)
๐๐ฅ๐ฅ๐จ๐ฐ๐๐๐ฅ๐ ๐๐๐๐ฎ๐๐ญ๐ข๐จ๐ง๐ฌ & ๐๐๐ฅ๐ข๐๐๐ฌ ๐๐จ๐ซ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐๐ฅ๐ฌ
- Pension contribution to PFA
- National Health Insurance Scheme
- National Housing Fund contributions
- Interest on loans for owner-occupied residential housing
- Life insurance or annuity premiums
- Rent relief – 20% of annual rent (up to โฆ500,000)
ย
๐๐๐ง๐ฌ๐ข๐จ๐ง๐ฌ & ๐๐ซ๐๐ญ๐ฎ๐ข๐ญ๐ข๐๐ฌ – ๐๐ฑ๐๐ฆ๐ฉ๐ญ
- Pension funds and assets under the Pension Reform Act (PRA) are tax-exempt.
- Pension, gratuity or any retirement benefits granted in line with the PRA
- Compensation for loss of employment up to โฆ50 million
ย
๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐๐ข๐ง๐ฌ ๐๐๐ฑ (๐๐๐) – ๐๐ฑ๐๐ฆ๐ฉ๐ญ
- Sale of an owner-occupied house
- Personal effects or chattels worth up to โฆ5 million
- Sale of up to two private vehicles per year
- Gains on shares below โฆ150 million per year or gains up to โฆ10 million
- Gains on shares above exemption threshold if the proceed is reinvested
- Pension funds, charities, and religious institutions (non-commercial)
ย
๐๐จ๐ฆ๐ฉ๐๐ง๐ข๐๐ฌ ๐๐ง๐๐จ๐ฆ๐ ๐๐๐ฑ (๐๐๐) – ๐๐ฑ๐๐ฆ๐ฉ๐ญ
- Small companies (turnover not more than โฆ100 million and total fixed assets not more than โฆ250 million) pay 0% tax
- Eligible (labelled) startups are exempt
- Compensation relief – 50% additional deduction for salary increases, wage awards, or transport subsidies for low-income workers
- Employment relief – 50% deduction for salaries of new employees hired and retained for at least three years
- Tax holiday for the first 5-years for agricultural businesses (crop production, livestock, dairy etc)
- Gains from investment in a labeled startup by venture capitalist, private equity fund, accelerators or incubatorsย
ย
๐๐๐ฏ๐๐ฅ๐จ๐ฉ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ฒ – ๐๐ฑ๐๐ฆ๐ฉ๐ญ
- Small companies are exempt from 4% development levy
ย
๐๐ข๐ญ๐ก๐ก๐จ๐ฅ๐๐ข๐ง๐ ๐๐๐ฑ – ๐๐ฑ๐๐ฆ๐ฉ๐ญ
- Small companies, manufacturers and agric businesses are exempt from withholding tax deduction on their income
- Small companies are exempt from deduction on their payments to suppliers
๐๐๐ฅ๐ฎ๐ ๐๐๐๐๐ ๐๐๐ฑ (๐๐๐) – 0% ๐จ๐ซ ๐๐ฑ๐๐ฆ๐ฉ๐ญ
- Basic food items – 0% VAT
- Rent – Exempt
- Education services and materials – 0% VAT
- Health and medical services
- Pharmaceutical products – 0% VAT
- Small companies (โค โฆ100m turnover) are exempt from charging VAT
- Diesel, petrol, and solar power equipment – VAT suspended or exempt
- Refund of VAT on assets and overheads to produce VATable or 0% VAT goods and services
- Agricultural inputs – fertilizers, seeds, seedlings, feeds, and live animals
- Purchase, lease or hire of equipment for agric purposesย
- Disability aids – hearing aids, wheelchairs, braille materials
- Transport – shared passenger road transport (non-charter)
- Electric vehicles and parts – exempt
- Humanitarian supplies – exempt
- Baby productsย
- Sanitary towels, pads or tampons
- Land and building
ย
๐๐ญ๐๐ฆ๐ฉ ๐๐ฎ๐ญ๐ข๐๐ฌ – ๐๐ฑ๐๐ฆ๐ฉ๐ญ
- Electronic money transfers below โฆ10,000
- Salary payments
- Intra-bank transfers
- Transfers of government securities or shares
- All documents for transfer of stocks and shares