FIRS Announces Increase in Turnover for Corporate, Personal Income Tax Ceilings
- The Federal Inland Revenue Service (FIRS) has announced an increase in corporate and income tax ceilings
- Special assistant to the President on Community Engagement, Abdullahi Tanko Yakasa, disclosed this at a recent public forum
- He said the new tax law has raised the corporate tax from N25 million to N50 million and the personal income tax to N800,000
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Federal Inland Revenue Service (FIRS) has announced that corporate and personal income tax thresholds have been increased.
The announcement came as stakeholders across the business, academic and civil society organisations gathered recently for a roundtable to demystify Nigeria’s new tax reform law and bring the public up to speed on its provisions and benefits.
Source: Getty Images
FIRS moves to debunk tax law misconceptions
The engagement was jointly organised by the Office of the Senior Special Assistant to the President on Community Engagement (Northwest) and the Federal Inland Revenue Service (FIRS) and served as a platform to debunk misconceptions about the new law and promote a better understanding of its implications for businesses and individuals.
The Senior Special Assistant to the President on Community Engagement (Northwest), Abdullahi Tanko Yakasai, disclosed that the new initiative was necessary due to misinformation regarding the new tax policy.
According to him, there have been a lot of misconceptions regarding the new tax law, stating that the engagement was designed to debunk them and provide accurate information on the revenue-sharing formula among the states.
He said that 50% of the revenue will be shared on an equal basis among the states, 30% based on consumption levels, and 20% based on population.
FG increases corporate, personal income tax ceilings
The presidential aide stressed that the new law provides substantial relief to small and medium enterprises and low-income earners, stating that the minimum annual turnover for corporate tax has been increased from N25 million to N50 million.
Yakasai said:
“For individuals, one must earn at least N800,000 monthly before becoming liable for personal income tax,” Yakasai noted.
“Additionally, there will be no tax on essential sectors such as food commodities, healthcare, or education. And the widely criticised inheritance tax has been completely removed.”
Daily Trust reported that Yakasai also said the members of the armed forces are now exempt from taxation under the new law.
Yakasai unveils the tax law’s key feature
He stressed that the reform is progressive, inclusive, and meant to improve the welfare of ordinary Nigerians.
Yakasai cited the harmonisation of tax collection systems via a unified digital platform to be run by the FIRS as a major feature of the reform.
Source: UGC
He disclosed that the measure will eliminate multiple taxation, ending traders and business owners harassment by various revenue agencies operating at the federal, state, and local government levels.
FIRS to launch e-invoicing
The development comes as the FIRS has continued engagement with large taxpayers to onboard them on the new e-invoicing scheme scheduled to begin on June 25, 2025.
FIRS has started onboarding large taxpayers on its Merchant Buyer Solution (MBS) interface.
It will begin implementing the national e-invoicing project fully on July 25, 2025.
New platform to phase out paper invoices
The project is a Merchant Buyer Solution, providing a digital representation of transactions between suppliers and buyers, replacing traditional paper or electronic documents such as invoices, credit notes, and debit notes.
The platform is a digital portal that shall be used by all VAT-registered taxpayers’ businesses to manage the issuance of e-invoices in line with Section 25, Part 5 of the Tax Administration and Enforcement Act 2007.
FIRS unveils strategy to achieve N25.2trn tax revenue
Legit.ng earlier reported that the FIRS finally released the breakdown of its strategy to achieve the N25.2 trillion revenue target in 2025.
The National Assembly Joint Committee on Finance announced this revenue target of N25.2 trillion for the FIRS on January 15, 2025, after commending them for successfully surpassing last year’s target.
FIRS recorded a total revenue of N21.6 trillion in 2024, surpassing the target of N19.4 trillion by an impressive 11% and setting a new record for the service.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
