President Bola Tinubu has signed the Nigeria Tax Reform Bills (hereinafter “the Bills”).
The Bills were signed into law on Thursday at the Presidential Villa, Abuja
Prior to the passage of the new Tax Laws, Nigeria’s tax- to – GDP ratio had peaked at 9.4%, according to the 2023 World Bank report.
The Bills signed into law by the President include the Nigeria Tax Bill 2024, which aims to provide unified fiscal legislation governing taxation in Nigeria, while the Nigeria Tax Administration Bill 2024, aims to provide a clear and concise legal framework for the fair, consistent and efficient administration of all tax laws in Nigeria.
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Others include the Nigeria Revenue Service (Establishment) Bill 2024, was initiated to repeal the Federal Inland Revenue Service Establishment Act, No. 13, 2007 and establish the Nigeria Revenue Service to assess, collect, and account for revenue accruable to the Federal Government of Nigeria (FGN), while the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, also seeks to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman for the harmonization, coordination and settlement of disputes arising from revenue administration in Nigeria.
The Bills repealed about twelve (12) principal and/or subsidiary legislations, as well as amended fifteen (15) other principal/subsidiary tax legislations.
The National Assembly made several amendments to the version sent by the President for consideration, including the decisions to retain the VAT rate at 7.5% as against the 12.5% proposed by the President and the corporate income tax rate at 30%.
The new tax laws will ensure increase in revenue threshold for determining small companies and introduction of a fixed asset threshold as an additional criterion. Medium-sized companies are no longer recognised.
Details shortly…
