The Federal Ministry of Finance has issued transition guidelines for the Tax Acts 2025 in Nigeria. The guidelines show the transition from repealed tax laws to the new laws, application, and administrative rules.
Overview and Scope
- The document provides rules for implementing the new tax legislation from January 1, 2026.
- It applies to taxpayers, tax authorities, and government agencies responsible for administering taxes.
- Focuses on preventing retroactive application and clarifying transitional procedures.
Key Principles
- The Acts apply prospectively. No taxes or penalties will apply to the period before January 1, 2026.
- Assessments from January 1, 2026 will be based on the new laws, while the old laws will apply to the prior period.
- Existing forms and procedures remain valid until new ones are issued.
- Incentives under old laws continue until the terminal date, while new incentives follow the new law.
Responsibilities of Taxpayers
- Taxpayers must retain records under the old tax laws for the statutory period.
- Filing of returns for 2025 remains under old laws, while returns due from 2026 follow new laws.
- Income tax for individuals and companies is assessed in line with the applicable law for the period.
Transaction Taxes
- Transactions before January 1, 2026, are subject to old laws, irrespective of when the payment is made.
- Contracts executed after the commencement date are taxed on the portion executed after the start date.
- Amounts received before the start date are taxed under the old law, while sums received after are taxed under the new Acts.
Conflict Resolution
- Where there is conflict in laws, the new acts supersede. Interpretation favors taxpayer rights.
- Unresolved conflicts are referred to the relevant tax authority for clarification.
Administration and Compliance
- Tax authorities oversee registration, filing, and payment processes.
- Taxpayer identification (TaxID) will be standardized and linked to the national identity system.
- Administrative safeguards prevent retroactive assessments and enforce non-retroactivity.
These Guidelines may be cited as the General Transition Guidelines for the Nigeria Tax Act
2025, the Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act
2025 and the Joint Revenue Board (Establishment) Act 2025 (the Acts).
