A simple guide to the new 2025 Nigerian tax regime for individuals. Learn how PIT, WHT, VAT and deductions apply.
INTRODUCTION
The 2025 Nigerian tax regime introduced major changes affecting individuals, professionals, landlords and business owners. Many people are still unaware of their obligations, deductions and filing responsibilities.
This article explains the key provisions in easy-to-understand language.
1. Who must pay personal income tax (PIT)
Every individual earning income from:
• Employment
• Business
• Consultancy
• Professional services
• Rent
• Commission
• Royalties
…must file and pay PIT annually.
Even business name owners are not exempt.
2. New deductions allowed under the 2025 regime
The law now recognizes important deductions such as:
• Business expenses
• Professional fees
• Rent of business premises
• Salary paid to staff
• Transport & utility costs (reasonable portions)
• Statutory pension contributions
• Insurance premiums
These reduce your taxable income.
3. tax returns are now strictly enforced
Every individual MUST:
• File annual returns
• Maintain books of accounts
• Keep receipts & documentation
• Respond to any tax queries
Failure attracts penalties, interest and possible enforcement.
4. new focus on professionals and freelancers
Lawyers, accountants, caterers, contractors, doctors, engineers etc. must:
• Register with their state tax authority
• Keep proper records
• File annual returns
• Deduct and remit withholding tax when applicable
5. what tenants and landlords must know about tax
Rent is taxable income. Landlords must:
• Declare rent received
• Keep records of tenants
• Provide rental receipts
• File annual returns
Tenants paying rent to individuals may be required to deduct withholding tax in certain situations.
6. penalties under the 2025 regime
Common penalties include:
• Non-filing penalty
• Failure to deduct WHT
• Failure to remit WHT
• Poor recordkeeping
• Under-declaration of income
Penalties can be substantial.
CONCLUSION
The 2025 tax regime demands compliance, proper records and professional guidance.
To stay compliant and avoid penalties, seek tax advisory support today.
Contact:
📞 08069454600
Leye Omitola & Co., Tax Advisory Lawyers.